Oil Prices Rise as Markets Focus on Supply Recovery and Demand Outlook

PUKMEDIA

Oil prices.

Oil prices edged higher on Tuesday, though gains were capped as traders ‌looked beyond easing geopolitical tensions in the Middle East and turned their attention to supply increases and demand prospects.

According to Reuters report, Brent crude futures gained 38 cents, or 0.5%, to $72.37 a barrel, while U.S. West Texas Intermediate crude rose 30 cents, or 0.4%, to $68.85 a barrel as of 0350 GMT, after settling down at around pre-Iran war levels on Monday.

U.S. President Donald Trump said on Monday the U.S. would either reach a deal with Iran or "finish the job," renewing his threat of military action as Tehran projects defiance following the funeral of former Supreme Leader Ayatollah Ali Khamenei.

On Monday night, Iran's Revolutionary Guards fired at least two missiles at commercial ships transiting the Strait of Hormuz, Axios reported, citing two U.S. officials. ‌The ⁠commercial ships suffered significant damage but had no casualties, the report said.

On Tuesday, Japanese-owned supertankers carrying Saudi Arabian crude were heading to the Strait of Hormuz to exit the Gulf, shipping data showed, joining a fleet of previously stranded vessels that left a day earlier.

The Organization of the Petroleum Exporting Countries and its allies including Russia agreed on Sunday to further increase output targets by 188,000 bpd from August, on top of similar increases ⁠for June and July.

Saudi Arabia cut the August official selling price (OSP) for its flagship Arab Light crude to Asia to $1.50 a barrel below the Oman/Dubai average, an $11 cut from the previous month and the biggest drop in more than two decades, according to a Saudi Aramco pricing statement on Monday.




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