SULAIMANI (ESTA) — After last week’s losses, oil prices rose on Tuesday as investors focused on tight supplies of crude and fuel products rather than concerns about a recession dampening demand going forward.
Brent crude futures rose 81 cents, or 0.7%, to $114.94 a barrel at 0703 GMT, adding to a 0.9% gain on Monday. The benchmark contract fell 7.3% last week in its first weekly fall in five.
U.S. West Texas Intermediate (WTI) crude futures for July, which expire later on Tuesday, rose to $111.19 a barrel, up $1.63, or 1.5%, from Friday’s close. There was no settlement on Monday, which was a U.S. public holiday. WTI dropped 9.2% last week.
The more-active WTI contract for August was up $1.84 at $109.83 a barrel.
Analysts said that prices have been supported by supply anxiety after sanctions on oil shipments from Russia, the world’s second-largest oil exporter, after its invasion of Ukraine and questions over how Russian output might fall due to sanctions on equipment needed for production.
Oil has surged in 2022 as Russia’s invasion of Ukraine compounded supply concerns and as oil demand recovered from COVID lockdowns. Brent hit $139, the highest since 2008, in March, , according to Reuters.
