Oil up in early Tuesday trade

Oil went up in early Tuesday trade. Brent crude climbed by 0.19 per cent, or about 0.14 cents, to reach $80.21 a barrel at 03:27 am CDT, according to Bloomberg news.

West Texas Intermediate soared by 0.24 per cent, or 0.18 cents, to trade at $74.94 a barrel.

The new round of U.S. and UK strikes against Houthis in the Red Sea, cooled tensions in the region and eased fears that global supplies are available.

Moreover, almost two years after Moscow’s invasion, reports of Ukrainian drone attacks against energy facilities on Russia’s Baltic coast opened a new front in the conflict between the two countries. As a result, crude ended the first session of this week higher.

The attack in Russia “is an important reminder that we have ongoing conflict in two important energy-producing regions,” according to Robert Rennie, head of commodity & carbon research at Westpac Banking Corp.

Severe weather on U.S. production facilities and the implementation of OPEC+ cuts may impact oil inventories. However, he noted that some of the tightness will be alleviated by the return of supply from Libya’s Sharara field.

Notably, despite numerous geopolitical tensions and an agreement by the Organisation of Petroleum Exporting Countries (OPEC+) to limit production, crude has failed to establish a consistent trajectory this year.

Plentiful oil supply as predicted by the International Energy Agency predicts as well as OPEC surplus offset the oil gains. Furthermore, US drillers are recuperating from a freeze that hampered operations, and Libya has resumed production from its largest field.