Oil prices rise on tight supplies, stable demand


Oil prices rose on Tuesday, recovering some of the previous session’s losses as Kazakhstan’s supplies continued to be disrupted and major producers showed no sign of being in a hurry to boost output significantly.

Brent crude rose $1.54 to $114.02 a barrel and U.S. West Texas Intermediate (WTI) crude was up $1.34, at $107.30. Both benchmarks had lost about 7% on Monday.

The producer group OPEC+ was also expected to stick to its plan for a modest rise in May at this week’s meeting, despite a surge in prices due to the Ukraine crisis and calls from the United States and other consumers for more supply.

United Arab Emirates energy minister Suhail al-Mazrouei said on Tuesday that the mission of OPEC+ was to stabilise markets and come up with as much supply as possible.

He said squeezing any partner out of the oil alliance, which includes the Organization of the Petroleum Exporting Countries, Russia and others, would only increase prices.

Oil prices had come under pressure earlier on Tuesday, falling as much as $2, ahead of peace talks between Ukraine and Russia to be held in Turkey on Tuesday, the first discussions in more than two weeks.

Sanctions imposed on Russia over its invasion of Ukraine have disrupted oil supplies, driving prices higher.

But a lockdown in Shanghai to curb rising coronavirus cases was expected to hit fuel demand in China, the world’s biggest importer.

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