WTI Crude oil trading near $87 per barrel and Brent crude oil trade above $93 per barrel on Tuesday after declining for two straight sessions, as traders continued to weigh a highly uncertain outlook for energy markets amid lingering concerns over a global economic slowdown,
While the supply outlook remained tight. Investors looked ahead to expected interest rate hikes from major central banks this week and assessed a raft of manufacturing PMI data that mostly pointed to weakening economic activity.
A worsening Covid situation in top crude oil importer China also weighed on markets in trading . Elsewhere, the CEO of oil trader Vitol Group said that high prices already started to bring about signs of demand destruction.
Meanwhile, traders were kept on edge as OPEC+ is expected to keep supply tight after agreeing to large output cuts.
The looming European Union ban on Russian oil also clouded the supply outlook further, as well as the US-led plan to cap the price of Russian crude.
While Also Still, the international benchmark rallied more than 10% in October, putting it on track for its first monthly gain in five amid tight global supplies.
OPEC and its allies, including Russia, agreed to cut production by 2 million barrels per day in November, the most significant curb since the start of the pandemic, while speculation grows that the oil cartel will further intervene in markets to shore up prices.
The European Union ban on Russian oil is also set to take effect in December as part of broader sanctions for the invasion of Ukraine.