Oil prices rose on Tuesday ahead of the release of the weekly US crude stocks on Wednesday. Last week oil inventories surprised markets with a 9.6-million-barrel drawdown and this week’s report could still show tightening supplies. Disruptions to supplies in Venezuela and another drawdown reported this week are boosting the price of the black stuff.
Venezuelan port Jose is still offline after electricity blackouts have forced operators to stop crude exports. US sanctions on Venezuela and Iran have combine with the efforts of the OPEC+ to keep prices from falling despite rising US production.
The balance between rising production in the US and the output cut agreement by OPEC+ broke in favour of higher prices as supplies are low when adding in the disruptions in Venezuela and Iran.
Recession fears have taken a back seat as prices are following demand fundamentals this week.