Oil prices edged higher during Asian trade on Tuesday, extending Monday's rebound from multi-week lows after the Organization of the Petroleum Exporting Countries and allies (OPEC+) agreed to raise production over the weekend, while concerns over potential new sanctions on Russia continued to bolster sentiment.
By 3:05 pm AEST (5:05 am GMT), Brent crude rose 46 cents or 0.7% to US$66.48 per barrel, while United States West Texas Intermediate crude gained 43 cents or 0.7% to $62.70.
ANZ analysts noted: "This marks the reversal of cuts that were set to remain in place until the end of 2026, following the rapid return of the previous tranche of idled barrels over recent months.
"However, the small increase was viewed as a warning that the group is ready to push more barrels onto the market."
Geopolitical risks also underpinned prices. Speculation of additional sanctions on Russia intensified after its largest airstrike on Ukraine set fire to a government building in Kyiv.
The European Union’s top sanctions official, along with a team of experts, was in Washington to discuss potential measures, which would mark the first coordinated transatlantic sanctions on Russia since Trump’s return to office.
Further sanctions would likely curb Russian oil exports, tightening global supply and supporting higher prices.
