Oil prices up amid expectations of tight supplies

Oil prices rose today, Tuesday, amid expectations of shrinking supplies in light of a possible disruption to production in Canada due to forest fires, as well as strong demand and voluntary reductions in production.

According to Reuters, US West Texas Intermediate crude futures rose 18 cents to $79.30 a barrel by 12:24 GMT. Brent crude futures rose 19 cents to $83.55 a barrel.

Tony Sycamore, a market analyst at IG, said in a note that the market is watching wildfires in western Canada that could disrupt the country’s oil supplies.

Oil prices increased by about 1% upon settlement in the previous trading session thanks to improved demand from the United States and China.

The American Motorists Group (AAE) expected road trips to rise on Labor Day over the long weekend of May 25-27 to the highest level since 2000, while Chinese data at the weekend showed consumer prices rising for the third month in a row.

The market also continued to react to comments by Iraqi Oil Minister Hayan Abdul Ghani on Sunday, in which he said that Baghdad would adhere to the voluntary production cuts reached by the OPEC+ alliance at its next meeting on June 1. The coalition includes the Organization of the Petroleum Exporting Countries (OPEC) and producers from outside it, led by Russia.