New Delhi Crude oil prices rose on Tuesday on expectations of demand due to the easing of Kovid-related restrictions by China. Fears of continued supply also supported prices as traders worried that an increase in output by OPEC+ would not be enough to ease tight supplies, analysts said.
Besides, Saudi Arabia’s decision to hike oil prices also supported crude oil futures.
“Crude oil is backed by China’s lifting of virus-related sanctions, Saudi’s move to raise prices for Asian buyers, and the EU’s sanctions on Russian crude. However, crude is struggling amid rising volatility in equity markets amid tight monetary concerns, said Ravindra Rao, head of commodity research at Kotak Securities.
He said market players are also trying to assess whether higher exports from countries such as Venezuela and Iran under economic sanctions could offset Russian supply losses.
Crude may fluctuate; However, tightness concerns may support the prices, said analysts.
Brent’s July contract on the Intercontinental Exchange was at $119.90 a barrel at around 1.30 pm, up 0.33% from its previous close.