Mumbai, 18 Jun (Commoditiescontrol): Crude oil prices edged higher in early trade on Tuesday, continuing the upward momentum from the previous session due to a robust demand outlook and growing investor confidence that OPEC+ might delay or reverse plans to increase supply in the fourth quarter of this year.
Global benchmark Brent crude futures increased by 21 cents, or 0.25%, to $84.46 per barrel. U.S. West Texas Intermediate (WTI) crude futures rose by 16 cents, or 0.2%, to $80.49 per barrel. Both benchmarks had surged about 2% on Monday, reaching their highest levels since April.
Last week, confidence in the oil market was bolstered by reports from the Organization of the Petroleum Exporting Countries (OPEC), the International Energy Agency (IEA), and the U.S. Energy Information Administration (EIA), which all indicated that oil demand would grow in the latter half of this year, potentially reducing stockpiles.
Investor sentiment has been on the rise since OPEC+ announced unexpected plans to increase production starting in October, driven by expectations of stronger future demand. Hedge funds and other money managers bought the equivalent of 80 million barrels in the six most important petroleum futures and options contracts over the week ending June 11, reversing about 40% of the 194 million barrels sold the week after the OPEC+ announcement.
Geopolitical tensions in the Middle East have also supported oil prices, with concerns about potential disruptions to global oil supplies if the Israel-Hamas conflict in Gaza escalates. On Monday, a U.S. special envoy visited Jerusalem to ease tensions along the disputed border with Lebanon, where Israel reported increasing hostilities with the Iran-backed Hezbollah militia.
Additionally, the U.S. military reported the destruction of four Houthi radars, one unmanned surface vessel, and one drone within the past 24 hours. Iran-aligned Houthi rebels in Yemen have been attacking vessels in the Red Sea as a show of support for Palestinians in the Gaza conflict.
As these factors converge, the oil market remains volatile, with prices closely tied to both supply dynamics and geopolitical developments.
(By Commoditiescontrol Bureau: 09820130172)
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