Oil prices rose on Tuesday after sliding in the previous session as markets weighed Middle East tensions against demand worries and rising OPEC supply.
Brent crude futures; rose $1.47, or 1.93%, to settle at $77.59 a barrel, while U.S. West Texas Intermediate crude futures; gained $1.47, or 2.08%, to settle at $72.24 a barrel.
Geopolitical tensions in the Middle East and an ongoing supply outage in Libya offered support to prices on Tuesday, analysts said.
“On the supply side, there are some bullish factors from the closure of Libya’s largest oilfield, which has affected around 0.3 million barrels per day of oil production,” said Suvro Sarkar, energy sector team lead at DBS Bank.
Some major shipping firms are still avoiding the Red Sea. Germany’s Hapag-Lloyd will continue to divert vessels around the Cape of Good Hope in the wake of maritime attacks by Yemeni Houthi militants, it said on Tuesday.
Regarding the Gaza war, the Israeli military has said its fight against Hamas will continue through 2024, worrying markets that the conflict could grow into a regional crisis that could disrupt Middle Eastern oil supplies.
U.S. Secretary of State Antony Blinken told Israeli leaders there was still a chance of winning acceptance from their Arab neighbors if they create a path to a viable Palestinian state.
