Oil prices rose on Tuesday on expectations that inventories in the US, the world’s biggest crude consumer, are expected to fall and on signs that demand in emerging markets remains healthy.
Crude futures likely received a boost from gains in Asian equity markets as regional central banks are expected to keep their interest rates steady. Signs of strong fuel demand in India, the world’s third-biggest oil consumer, in March also supported prices. Last month, fuel consumption jumped by 5% from a year earlier to a record 4.83 million barrels per day.
The country continues to be the main destination for Russian Urals crude amid the resorting of global oil trade flows in the wake of the invasion of Ukraine.
Brent crude rose 57 cents, or 0.68%, to $84.75 a barrel at 0425 GMT, while US West Texas Intermediate gained 60 cents, or 0.75%, to $80.34.
Oil futures have climbed more than 5% since the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia surprised the market last week with a new round of production cuts starting in May. On the US supply front, industry data on US crude stockpiles is due on Tuesday.
-REUTERS
