Oil prices edge up from lows, demand concerns linger

London, (Quantum Commodity Intelligence) - Oil futures moved higher in Asia Tuesday, rebounding from Monday's two-week lows as the weaker dollar helped improve sentiment, although concerns over the demand recovery continue to weigh on the market.   

North Sea Brent was trading 0.34/b higher at $62.49/b, while U.S. WTI was up $0.34/b at $58.99/b at 06:15 BST (13:15 Singapore).

The U.S. dollar moved lower against the basket of major currencies as U.S. President Biden on Monday defended proposals to raise corporate taxes to help pay for his infrastructure spending plans, while U.S. Treasuries dipped to a two-week low.

The lower dollar typically supports oil, which is traded in USD on international markets.

Oil prices on Monday lost more than 4% on concerns that second-quarter demand would not keep pace with the recently announced OPEC+ production cuts and increasing supplies from Iran.

European lockdowns and rising COVID-19 cases across parts of Asia, particularly India, have led some analysts to revise oil demand forecasts for 2021.