Crude oil futures settled marginally higher on Tuesday, after prices moved up amid speculation the fuel market could get tighter this winter.
Traders also noted Citigroup Inc’s comments that oil prices may hit $90 a barrel at times this winter as gas-to-oil switching drives stockpiles lower.
West Texas Intermediate Crude oil futures for November ended higher by $0.12 or about 0.2% at $80.64 a barrel.
The contract rebounded swiftly to $81.62 after falling to a low of $79.47, but retreated soon and stayed rangebound just above the flat line till the end of the sssion.
Brent crude futures were down $0.25 or 0.3% at $83.40 a barrel a little while ago.
Oil continued to climb with power prices rising to record highs in recent weeks as a rebound in global demand contributed to energy shortages in Asia, Europe and the United States. The energy crisis affecting China is expected to last through to the end of the year.
The supply side remains tight as the Organization of the Petroleum Exporting Countries and allied producers, or OPEC+, is sticking to plans to gradually bring back output, rather than quickly boost supply.
Markets now look ahead to weekly oil 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’s inventory data is due Wednesday morning.