Oil prices increased on Tuesday over expectations that OPEC+ producers will stick to their production pact, keeping output unchanged while demand continues to rise in the aftermath of the COVID-19 pandemic.
International benchmark Brent crude was trading at $85.14 per barrel at 0625 GMT for a 0.50% increase after closing the previous session at $84.71 a barrel.
American benchmark West Texas Intermediate (WTI) traded at $84.33 a barrel at the same time for a 0.33% gain after ending the previous session at $84.05 per barrel.
“The oil market is expected to see bullish momentum this week, at least until OPEC+ meets, as traders expect no change of supply policy by the group, despite the extreme market tightness,” according to Rystad Energy’s Senior Oil Markets Analyst Louise Dickson.
In line with the group’s previous decision, production is expected to increase by 400,000 barrels per day in December, despite calls from major oil consumers to produce more.
Experts say the tight market conditions ahead of the winter season and the ongoing global energy crunch could fuel higher prices.
Investors are also awaiting industrial data on crude oil inventories in the US, the world’s largest oil-consuming country.
The American Petroleum Institute (API) will release its forecast data on US inventories later on Tuesday before the US Energy Information Administration’s (EIA) oil stock data on Wednesday.
By Sibel Morrow