Crude oil prices climbed higher on Tuesday amid rising demand for fuel oil and diesel due to severe energy crisis in China and several parts across Europe.
The OPEC and allies’ decision to stick to their plan of increasing output only gradually, and reports that a few oil producers are unlikely to meet current output targets contributed as well to oil’s uptick.
West Texas Intermediate crude oil futures for November ended higher by $0.52 or about 0.6% at $82.96 a barrel.
Brent crude futures were up $0.65 or 0.77% at $84.98 a barrel a little while ago.
Falling temperatures in the northern hemisphere has resulted in increased demand for oil, coal and natural gas, pushing up prices of these products.
China is set to face severe cold weather, according to AccuWeather.com.
Meanwhile, traders are looking ahead to weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API’s report is due later today, while the EIA is scheduled to release its inventory data Wednesday morning.