WASHINGTON (dpa-AFX) - Crude oil prices climbed higher on Tuesday, recovering after the previous session's decline, amid possible drop in supplies in the market due to growing tension in Eastern Europe and the Middle East.
West Texas Intermediate Crude oil futures for March ended higher by $2.29 or about 2.8% at $85.60 a barrel.
Brent crude futures are up $1.69 or nearly 2% at $87.12 a barrel.
After NATO said it was putting forces on standby and reinforcing Eastern Europe with more ships and fighter jets, Russia accused the West of 'hysteria' and putting out information 'laced with lies.'
Yemen's Houthi movment, in alignment with Iran, launched its latest missile attack at the United Arab Emirates (UAE) on Monday. The attack, which reportedly targeted a base hosting the U.S. military, was thwarted by the U.S.-built Patriot interceptors, according to U.S. and U.A.E. officials.
Lower output from OPEC and major oil producers too contribute to the jump in oil prices. Several members of the OPEC are reportedly struggling to reverse-engineer well closures, a process that can be expensive and technically complex, especially offshore or in difficult terrain.
In Nigeria and Angola, production is hampered by poor infrastructure and falling investment.
According to reports, OPEC will be about 700,000 barrels per day short of its quota in January, almost the same volume by which the group has raised its quota in the last couple of months.
Markets now await weekly inventory reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API's report is due later today, while the EIA is scheduled to release its inventory data Wednesday morning.
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