Brent oil futures added 0.59% to $85.93 and WTI futures were up 0.46% to $83.69
Oil was up on Tuesday morning in Asia clawing back some of the previous day’s losses. Concerns are also mounting over potential supply disruptions as geopolitical tensions rise in both Eastern Europe and the Middle East.
Brent oil futures added 0.59% to $85.93 by 3:22 AM GMT and WTI futures were up 0.46% to $83.69.
Oil hit seven-year highs during the previous week, boosted by a tightening supply and resurging fuel demand globally.
The market tone stays strong, supported by heightening geopolitical risk, Sunward Trading chief analyst Chiyoki Chen told Reuters.
We saw profit-taking on Monday when the prices moved higher and as Wall Street temporarily sank amid concerns over the U.S. Federal Reserve’s policy to reduce economic stimulus, but buying appetite for oil remained solid, Chen added.
U.S. shares ended a rollercoaster session on Monday, ending higher after posting heavy losses earlier in the session. Investors turned to safe-haven assets, as uncertainty over geopolitical tensions and Fed monetary policy tightening mounted.
U.S.-Russia tensions over Ukraine remain, with NATO saying on Monday that it is putting forces on standby and sending more ships and fighter jets to Eastern Europe. Russia denounced the move as Western ‘hysteria’ over its build-up of troops to the Ukraine border.
In the U.S., lower U.S. oil inventories are also giving oil a boost. Crude inventories around the NYMEX WTI delivery point at Cushing in Oklahoma are at their lowest levels for the time of year since 2012.
Investors now await crude oil supply data from the American Petroleum Institute (API), due later in the day.
Meanwhile, portfolio investors added to their bullish positions in oil for a fifth week in a row, with some countries starting to emerge from their latest COVID-19 outbreaks, and governments are beginning to lift business and travel restrictions.