Oil prices edged higher on Tuesday as traders looked beyond easing geopolitical tensions in the Middle East and turned their attention to demand prospects and supply increases.
Brent crude futures gained 85 cents, or 1.2%, to $72.84 a barrel, while U.S. West Texas Intermediate crude rose 74 cents, or 1.1%, to $69.29 a barrel as of 0645 GMT, after settling down at around pre-Iran war levels on Monday.
President Donald Trump said on Monday the U.S. would either reach a deal with Iran or “finish the job,” renewing his threat of military action as Tehran projects defiance following the funeral of former Supreme Leader Ayatollah Ali Khamenei.
Investors have been keeping a close eye on talks between the U.S. and Iran over the fate of shipping through the Strait of Hormuz while tracking the recovery in Gulf oil exports.
On Monday night, Iran’s Revolutionary Guards fired at least two missiles at commercial ships transiting the Strait of Hormuz, Axios reported, citing two U.S. officials. The commercial ships suffered significant damage but had no casualties, the report said.
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On Tuesday, Japanese-owned supertankers carrying Saudi Arabian crude were heading to the Strait of Hormuz to exit the Gulf, shipping data showed, joining a fleet of previously stranded vessels that left a day earlier.
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, including Russia, agreed on Sunday to further increase output targets by 188,000 bpd from August, on top of similar increases for June and July.
