Oil prices gain, focused turns to the Middle East crisis ‎

Oil prices rose more than a dollar on Tuesday after falling in the previous session, with markets balancing tension in the Middle East amid concerns about demand and increased OPEC supplies.

According to Reuters, Brent crude futures rose $1.33, or 1.75%, to $77.45 per barrel by 11:31 GMT, while US West Texas Intermediate crude futures rose $1.29, or 1.82%, to $72.06. per barrel.

Analysts said that geopolitical tension in the Middle East and the ongoing supply outages in Libya supported the rise in prices on Tuesday.

“On the supply side, there are some positive factors from the closure of the largest oil field in Libya, which affected about 0.3 million barrels per day of oil production,” said Suvroo Sarkar, head of the energy sector team at DBS Bank.

Some major shipping companies still avoid the Red Sea. The German company Hapag-Lloyd said on Tuesday that it would continue to divert ships around the Cape of Good Hope in the wake of naval attacks launched by the Houthis.

Oil prices rebounded from the losses they incurred on Monday by 3 and 4 percent, respectively, after Saudi Arabia sharply reduced official selling prices.

In the United States, Federal Reserve Board of Governors member Michelle Bowman said on Monday that she now sees US monetary policy as “sufficiently restrictive” and indicated her willingness to support eventual cuts in interest rates as inflation declines.

Core inflation data released on Thursday could provide new evidence regarding the fight against inflation, while the market is also awaiting US inventory data from the American Petroleum Institute industry group due later on Tuesday.