Oil prices rise amid US demand optimism

Oil rigs

Oil prices edged up on Tuesday amid expectations that US crude inventories will continue to decline for the eighth consecutive week, and in light of latest developments from OPEC+.

The international benchmark Brent crude was trading up 0.2% at $75.34 per barrel, at 9.05 am Makkah time.

WTI crude rose 0.3% to $74.31 per barrel.

"Optimism about tight supply and declining US crude stockpiles lent support," Reuters reported, citing Toshitaka Tazawa, an analyst at commodities broker Fujitomi Co.

"Still, growing concerns over a spike in COVID-19 infection cases worldwide and uncertainty over production plans by OPEC+ will likely limit gains," he added.

Meanwhile, OPEC+ is yet to make progress on the deal to raise oil output levels, Reuters reported, citing sources. Russia is working to bring the divided parties back to the negotiating table and reach an agreement.

The American Petroleum Institute is expected to release preliminary data on US crude inventories for the past week, later today.