Oil prices rose on Tuesday as a supply crunch in natural gas, electricity and coal continued across the globe, helping create extra demand for oil products like fuel oil and diesel.
Meanwhile, the OPEC+ alliance is still only adding incremental, monthly supplies, and some members aren’t expected to meet current output targets.
Benchmark Brent crude futures climbed 70 cents, or 0.8 percent, to $85.03 a barrel, after having fallen 0.6 percent on Monday. U.S. oil futures were up 95 cents, or 1.2 percent, at $82.62.
Markets continue to focus on the ongoing global energy crunch, with falling temperatures in China reviving concerns over whether the world’s biggest energy consumer can meet domestic demand for heating.
Cold temperatures in the northern hemisphere are expected to worsen the oil supply deficit.
Against the backdrop of India reeling under high transportation fuel prices, Prime Minister Narendra Modi will meet chief executives of global oil majors and international energy experts on Wednesday.
This is the sixth such annual interaction which began in 2016 and marks the participation of global leaders in the oil and gas sector, who deliberate upon key issues of the sector and explore potential areas of collaboration and investment with India.