WASHINGTON (dpa-AFX) - Oil prices moved higher on Thursday, extending recent gains, amid concerns about supply disruptions due to geopolitical tensions, and possible surge in demand from some of the largest consumers of oil, such as the U.S. and China.
The decision of the Organization of Petroleum Exporting Countries and allies, collectively known as OPEC+, to maintain their current supply policy and to call on some members to boost compliance with output cuts continued to support oil prices.
Persisting concerns about the tensions in the Middle East contributed as well to the rise in oil prices.
West Texas Intermediate Crude oil futures for May ended higher by $1.16 or about 1.4% at $86.59 a barrel, gaining for a fifth straight session.
Brent crude futures settled at $90.65 a barrel, gaining $1.30 or about 1.45%.
The OPEC+ said some countries would compensate for oversupply in the first quarter. Russia is reportedly looking to shift to output cuts rather than curbing its exports.
Ukrainian attacks on Russian refineries and the potential for further escalation in Middle East conflicts continue to raise concerns about supply.
Also, it is feared that the Israel-Hamas war in Gaza may spread to include Iran, possibly disrupting supplies from the Middle East.
According to Bank of America, the global oil market will likely see a deficit of 450,000 barrels per day in the second quarter due to rising demand and falling inventories.
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