Oil prices increased on Tuesday amid investor profit-taking and expectations of a tight supply-demand balance in the markets in the coming months, after falling to the lowest levels in nearly a month with the eased tensions in the Middle East.
International benchmark Brent crude traded at $87.15 per barrel at 10.14 a.m. local time (0714 GMT), a 0.15% increase from the closing price of $87 per barrel in the previous trading session.
The American benchmark West Texas Intermediate (WTI) traded at $82.03 per barrel at the same time, a 0.16% rise from the previous session that closed at $81.9 per barrel.
Traders see a tightening supply-demand balance in the coming months as the approaching driving season is expected to spur increased demand. The prospect of potentially tighter supplies puts upward pressure on prices.
Renewed US sanctions on Venezuela, which has an export capacity of around 600,000 barrels per day, also fueled supply concerns.
However, global economic concerns, a large build in the world’s largest oil consumer, US crude oil stocks, and the Fed’s hawkish stance that has led to a strong dollar, continue to put downward pressure on oil prices.
