Oil prices rose on Tuesday, although gains remained limited as traders shifted their attention to increasing global supply and demand prospects, while largely looking past the easing of geopolitical tensions in the Middle East.
Brent crude futures climbed 28 cents, or 0.39%, to $72.29 per barrel by 00:46 GMT, while U.S. West Texas Intermediate (WTI) crude gained 29 cents, or 0.26%, to $68.84 per barrel. Both benchmarks had settled on Monday near the levels seen before the Iran conflict.
Tim Waterer, Chief Market Analyst at KCM Trade, said that recovering oil supplies had reduced the immediate geopolitical risk premium, but markets remained cautious about placing too much confidence in the current ceasefire because of the unpredictable nature of U.S.-Iran relations.
U.S. President Donald Trump said on Monday that the United States would either reach an agreement with Iran or “finish the job,” reiterating his threat of military action as Tehran maintained a defiant stance following the funeral of the late Supreme Leader Ali Khamenei.
Investors are closely monitoring U.S.-Iran negotiations for indications about the future of shipping through the Strait of Hormuz, while also watching the recovery of Gulf oil exports.
According to Reuters estimates, the United Arab Emirates increased its crude oil production to more than 3.8 million barrels per day in June, the highest level since April 2020 and above pre-Iran war output levels, following its withdrawal from the OPEC+ alliance in May.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, agreed on Sunday to raise their production targets by 188,000 barrels per day starting in August, following similar increases approved for June and July.
Source: Reuters
