Brent crude was up $1.54, or 1.4%, at $114.02 a barrel by 1110 GMT and US West Texas Intermediate (WTI) crude was up $1.34, or 1.3%, to $107.30.
Oil prices rose on Tuesday, offsetting some of the previous session’s losses as Kazakhstan’s supplies continued to be disrupted and major producers showed no sign of being in a hurry to boost production.
Brent crude was up $1.54, or 1.4%, at $114.02 a barrel by 1110 GMT and US West Texas Intermediate (WTI) crude was up $1.34, or 1.3%, to $107.30. Both the benchmarks had lost nearly 7% on Monday.
“There was an overreaction on Monday and the market is rethinking it,” said UBS analyst Giovanni Stanovo.
“Disruptions to oil production in Russia are finally starting to appear, Kazakh crude production has been affected in recent days, and demand for gasoline and jet in Europe and the United States is still solid.”
Kazakhstan is set to lose at least a fifth of its oil production for a month following storm damage to mooring points used for crude exports from the Caspian Pipeline Consortium (CPC), the energy ministry said. .
Producer group OPEC+ at this week’s meeting was expected to stick to its plan for a modest increase in May, despite a jump in prices due to the Ukraine crisis and calls for more supplies from the United States and other consumers.
UAE Energy Minister Suhail Al-Mazroui said on Tuesday that OPEC+’s mission was to stabilize markets and come up with more and more supplies.
He added that pulling any participant out of the oil alliance, which includes the Organization of the Petroleum Exporting Countries, Russia and others, would only increase prices.
Oil prices came under pressure earlier on Tuesday, falling as low as $2, ahead of peace talks between Ukraine and Russia to be held in Turkey on Tuesday, the first discussions in more than two weeks.
Sanctions imposed on Russia over its invasion of Ukraine have disrupted oil supplies, pushing up prices.
But a lockdown in Shanghai to curb rising cases of the coronavirus was expected to hit fuel demand in China, the world’s biggest importer. Analysts at ANZ Research said Shanghai accounts for about 4% of China’s oil consumption.
“China’s zero-COVID policy is bringing some relief, albeit involuntarily, to the oil market, which is very tight due to the lack of supplies from Russia,” said Commerzbank analyst Carsten Fritsch.
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