The OPEC+ decision and the unrest in Saudi Arabia have pushed crude oil prices higher today.
Oil prices rose to around $ 69 a barrel on Tuesday as investors focused on tightening supply due to reduced production by OPEC+ and amid rising market expectations of a recovery in demand.
Crude oil prices rose to their highest level since the pandemic hit the world. Recently Yemeni Houthi forces fired a missile towards Saudi oil on Sunday further increasing the tensions that ensued.
During the US market session, Brent crude futures traded up 51 cents at $ 68.75 after trading a low of $ 67.61. Meanwhile, US WTI added 37 cents at $ 65.42 a barrel.
According to analysts, the recent slump in prices has prompted investors to increase purchases. In addition, the OPEC+ meeting which decided to extend the commitment to cut crude oil production to ensure the global oil balance also contributed to the increase in oil prices.
With a shortage of supply in the physical market, declining oil prices tend to push market players to increase physical oil purchases.
