SULAIMANI (ESTA) — Oil prices rose on Tuesday on expectations that a limited production increase by major oil producers and a solid post-pandemic recovery in fuel demand will keep a tight supply condition.
Brent crude futures was up 31 cents at $89.57 a barrel at 0620 GMT.
U.S. West Texas Intermediate (WTI) crude rose 29 cents to $88.44 per barrel, having gained 1.5% in the previous day.
They gained around 17% in January, the biggest monthly gain since February 2021, amid a supply shortage and geopolitical tensions in Eastern Europe and the Middle East.
“The market is maintaining a bullish tone on expectations that supply tightness will continue as demand is picking up, with receding fears over spreading Omicron coronavirus variant,” Reuters quoted Hiroyuki Kikukawa, general manager of research at Nissan Securities, as saying.
“All eyes are on OPEC+ decision as well as development of the conflict between Russia and the West over Ukraine,” he said.
Market analysts and sources widely expect OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, to keep to its policy of gradual production increases when it meets on Wednesday, according to Reuters.
