Oil Rises Supported by Low Supply And Recovery After The Pandemic

Oil prices rose on Tuesday, hovering near the highest levels in seven years recorded last week, supported by expectations of continued tight supply due to a limited increase by major producers and a strong recovery in fuel demand after the pandemic.

Brent crude contracts for April delivery rose 24 cents, or 0.27%, to $89.50 a barrel.

US West Texas Intermediate crude contracts rose 27 cents, or 0.31%, to $88.42 a barrel.

The two benchmarks recorded their highest levels since October 2014 on Friday, as Brent reached $91.70 a barrel and US crude reached $88.84.

They also recorded gains for the sixth consecutive week.

And they achieved a gain of about 17% in January, which is the largest percentage increase since February 2021.

Crude prices also got a boost from the tension between Russia and the West over Ukraine, which has raised concerns that energy supplies to Europe could be disrupted.