Oil climbs on bet demand will hold up despite Delta variant surge

While the Delta variant of the coronavirus has led to rising infections and curbs on movement, global consumption is expected to hold up and tighten the market through the end of the year.

Oil rose alongside broader equity gains with investors optimistic global economic growth will continue even in the wake of Covid-19’s resurgence. Futures advanced 2.7% in New York on Tuesday, the biggest gain in more than two weeks. U.S. and European stocks touched record highs amid expectations that economic growth will remain strong. While the delta variant has led to rising infections and curbs on movement, global consumption is expected to hold up and tighten the market through the end of the year. “Crude oil is riding the coattails of a strong showing in the U.S. equity markets,” said Phil Streible, chief market strategist at Blue Line Futures LLC in Chicago. “Some investors are also getting optimistic that the blow to demand from the delta variant spread is tampering off, if even just slightly.”