Oil prices rose in early Asian trading on Tuesday, after falling sharply in the previous session, as markets balanced continued tension in the Middle East on the one hand, and demand concerns and increased OPEC supplies on the other hand.
Price action
Brent crude futures rose 26 cents, or 0.34 percent, to $76.38 per barrel by 0311 GMT, while US West Texas Intermediate crude futures rose 20 cents, or 0.28 percent, to $70.97 per barrel.
Brent fell more than three percent and US crude fell four percent on Monday, due to sharp price cuts by Saudi Arabia, the largest oil exporter, and an increase in OPEC production.
However, concerns remain about the Gaza war. The Israeli military said its fight against Hamas would continue until 2024, raising concerns in markets that the conflict could develop into a regional crisis that could disrupt oil supplies in the Middle East.
US Secretary of State Anthony Blinken arrived in Tel Aviv late Monday to brief Israeli officials on his two-day talks with Arab leaders about ending the war.
But a survey conducted by Reuters on Friday concluded that OPEC oil production rose in December, as increases in Angola, Iraq and Nigeria offset ongoing cuts by Saudi Arabia and other members of the broader OPEC+ alliance.
The increased supply also prompted Saudi Arabia to reduce the official selling price of its leading Arab Light crude to Asia in February to the lowest level in 27 months.
The market is awaiting US inventory data from the American Petroleum Institute later today.
