Oil prices traded mixed in choppy trade on Tuesday after a survey showed supply chain bottlenecks and logistical problems sent input costs soaring and curtailed Eurozone manufacturing growth last month.
The downside, if any, was limited after a Reuters’ survey suggested that the increase in OPEC’s oil output in October was short of the rise planned under a deal with allies, due to involuntary outages and limited capacity in some smaller producers.
Brent crude futures for January delivery were little changed at $84.72 a barrel, giving up earlier gains. U.S. West Texas Intermediate (WTI) crude futures for December settlement were down 0.3 percent at $83.77 a barrel.
Analysts say that oil prices have further headroom to rise in the short term as demand recovers from the worst of the Covid-19 pandemic.
Demand for crude oil is expected to rise as winter months approach. At the same time supply is expected to remain the same due to OPEC’s cautious approach to boosting output.
The alliance is expected to stick to the gradual, monthly production increases of 400,000 bpd at its next meeting, scheduled for Thursday.
Industry group the American Petroleum Institute releases the first of this week’s two supply reports later today.