Oil stable in early Tuesday trade

Oil stabilised following its largest increase in a week, as OPEC+ plans to reaffirm production cuts amidst the Middle East and Russia tensions, as per a Bloomberg report.

Brent traded below $87 a barrel, up 1.6 per cent on Monday, while West Texas Intermediate hovered near $82.

At next week’s meeting, OPEC+ delegates anticipate no supply policy changes, deeming current quotas effective until June.

Crude prices rose nearly 13 per cent this quarter, aided by Ukraine’s attacks on Russian refineries and strengthening product markets. Hedge funds are bullish on Brent amidst a positive market outlook.

Meanwhile, Indian buyers ceased Venezuelan oil purchases before a sanctions waiver expiration and stopped accepting crude from Russian-owned tankers due to sanctions risks.

Moreover, Federal Reserve signals of potential interest rate cuts boosted risk asset demand, including oil.

Supply disruption risks persist amid the Russia-Ukraine conflict, with a weaker US dollar supporting prices.

Brent’s technical indicators suggest a bullish pattern, with its moving averages nearing a golden cross, which historically precedes price surges.