Oil prices rise as supplies tighten and demand remains stable
1 min read
Oil prices increased on Tuesday, recouping some of the previous session’s losses, as Kazakhstan’s supply remained interrupted and major producers showed no signs of rushing to increase output considerably.
Brent crude was up $1.54, or 1.4 percent, to $114.02 a barrel by 1110 GMT, while WTI crude in the United States was up $1.34, or 1.3 percent, to $107.30. On Monday, both benchmarks had lost approximately 7%.
There was an overreaction on Monday, and the market is rethinking it, said Giovanni Staunovo, an analyst at UBS.
“The Russian oil production interruption has now been obvious, Kazakh crude output has taken a knock in recent days, and gasoline and jet demand in Europe and the United States remains strong”.
According to the energy ministry, storm damage to mooring sites used to export petroleum from the Caspian Pipeline Consortium (CPC) will cause Kazakhstan to lose at least a fifth of its oil output for at least a month.
Suhail al-Mazrouei, the UAE’s energy minister, stated on Tuesday that OPEC+’s aim was to stabilise markets and provide as much supply as feasible.
