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Oil prices rose on Tuesday after a report by the Organization of the Petroleum Exporting Countries (OPEC) said that market fundamentals remained strong and against the backdrop of concerns about possible supply disruptions as the United States tightens the noose on Russian oil exports.
By 0113 GMT, Brent crude futures rose 33 cents, or 0.4 percent, to $82.85 per barrel. US West Texas Intermediate crude futures also increased 33 cents, or 0.4 percent, to $78.59 per barrel.
In its monthly report, OPEC blamed speculators for the latest drop in prices. It also slightly raised its forecast for global oil demand growth for 2023 and stuck to its relatively high forecast for 2024.
Last week, oil prices fell to their lowest level since July, affected by fears of a possible decline in demand in the United States and China, the world’s largest oil consumers. China’s consumer price index fell in October to levels not seen since the Covid-19 pandemic, and exports for that month contracted more than expected.
The note added that renewed talks in Iraq to restart an oil pipeline could act as a market headwind.
Iraqi Oil Minister Hayan Abdul Ghani expects to reach an agreement with the Kurdistan Regional Government and foreign oil companies to resume production from the oil fields in the region and to resume exports from the northern fields via the Iraqi-Turkish pipeline.
Turkey has halted flows of 450,000 barrels per day of northern exports through the pipeline since March 25, following a ruling by the International Chamber of Commerce.
Oil prices also received support from the US crackdown on Russian oil exports, which could lead to supply disruptions.
The US Treasury Department sent notices to ship management companies requesting information on 100 ships suspected of violating Western sanctions on Russian oil, which is the largest step Washington has taken since imposing a price ceiling to reduce Moscow’s oil revenues.
In addition, the US Department of Energy plans to purchase 1.2 million barrels of oil to help replenish the Strategic Reserve after selling the largest amount ever of inventories last year.
