Oil rose for a second day in early Asian trading on Tuesday, as US plans to buy oil for the Strategic Petroleum Reserve supported prices, while wildfires raging in Canada added to supply concerns.
The US Department of Energy said Monday it would buy three million barrels of crude oil for the Strategic Petroleum Reserve for delivery in August, and requested bids by May 31.
The market got a boost from expectations that the US strategic reserve oil buyback will continue if WTI prices fall near or below $70 a barrel, said Toshitaka Tazawa, an analyst at Fujitomi Securities.
He added that one of the reasons for the gains was also some investors hunting for deals after the recent sharp declines.
