WASHINGTON (dpa-AFX) - Oil prices climbed to over 5-month high on Tuesday amid rising demand, and concerns about supply due to escalating geopolitical tensions.
Tighter supply from Mexico also supported oil prices. According to a Bloomberg report, Petroleos Mexicanos is cutting some oil exports over the next few months.
Recent encouraging manufacturing activity data from the U.S. and China signal a potential surge in oil demand from the two largest oil-consuming nations in the world.
West Texas Intermediate Crude oil futures for May ended higher by $1.44 or about 1.72% at $85.15 a barrel, the highest settlement since last October.
Brent crude futures settled at $88.94 a barrel, gaining $1.53 or about 1.75%.
On the geopolitical front, Iran has vowed to retaliate after it accused Israel of bombing its embassy complex in Syria on Monday, in a deadly escalation of regional tensions over the war in Gaza.
Ukraine reportedly struck one of Russia's largest oil refineries with a drone attack on the highly industrialized Tatarstan region southeast of Moscow today.
Tatarstan's head Rustam Minnikhanov posted on social media that industrial locations had been targeted by drones in the towns of Nizhnekamsk and Yelabuga.
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