WASHINGTON (dpa-AFX) - Oil prices rose sharply on Tuesday amid easing concerns about excess supply on hopes the Organization of Petroleum Exporting Countries and their allies, collectively known as OPEC+, will delay plans to return its production cuts by a few more months.
Expectations of increased demand for oil from China after recent buoyant data from the world's second largest economy contributed as well to the rise in oil prices.
According to reports, Saudi Arabia will likely cut crude prices for Asian buyers to the lowest levels in at least four years.
Oil prices were also supported by geopolitical tensions in the Middle East after reports indicated claims of Israeli airstrikes targeting southern Lebanon.
The situation on the Israel-Lebanon border is heating up as renewed tensions escalate between the Israel Defense Forces (IDF) and the Iranian-backed militant group Hezbollah.
West Texas Intermediate Crude oil futures for January closed up $1.84 or about 2.7% at $69.94 a barrel.
Brent crude futures settled at $73.62 a barrel, gaining $1.79 or about 2.5%.
The OPEC+, which is scheduled to meet on Thursday (December 5) to decide whether it should start returning 2.2 million barrels per day of production cuts, adding 180,000 barrels per day of additional supply, from January. Now, according to some reports, the group is likely to postpone its plan till the end of the first quarter of 2025.
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