WASHINGTON (dpa-AFX) - Oil prices moved higher on Tuesday amid concerns about a possible drop in crude supplies due to U.S. sanctions on Russian oil, and lower output from Iran. A weak dollar contributed as well to the rise in oil prices.
However, oil's upside was limited on concerns U.S. President Donald Trump's decision to clamp 25% tariffs on steel and aluminum imports into the U.S. could prompt trade partners to retaliate with tariffs on U.S. goods, and result in slowing growth and weak demand for oil.
West Texas Intermediate Crude oil futures for March closed higher by $1.00 or nearly 1.4% at $73.32 a barrel.
Brent crude futures climbed to $76.98 a barrel, gaining $1.11 or nearly 1.5%.
Also, Russian oil production fell short of its OPEC+ quota in January, easing concerns of an oversupply.
The U.S. Secretary slapped sanctions on Iran, targeting individuals and tankers involved in transporting several millions of barrels of Iranian crude every year to China.
Elsewhere, Palestinians in Gaza fear a return to war after U.S. President Donald Trump told Hamas to free all Israeli captives by noon Saturday or he would propose cancelling the Israel-Hamas ceasefire and letting 'all hell break loose'.
Concerns of further disruptions to global supplies were heightened following a Politico report that European countries plan to seize Russia's shadow fleet.
Markets now await weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA), due later today, and Wednesday morning, respectively.
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