Beijing

Oil prices were set to rise for a second consecutive day on Tuesday following an increase of over a dollar, driven by expectations of reduced supply due to Russian production cuts and attacks on Russian refineries. A rise of 23 cents to $86.98 a barrel for Brent crude was observed, while US crude futures climbed 28 cents to $82.23. Analysts attribute the increase in crude oil prices to supply-related concerns and ongoing tensions in the Middle East. Both contracts had risen by $1.32 in the previous trading session.

Russian oil companies were instructed to decrease output to meet an Organization of Petroleum Exporting Countries (OPEC) target of 9 million barrels per day (bpd), after having produced about 9.5 million barrels per day in late February. Additionally, Ukrainian attacks on Russian oil refineries persist, with Russia’s Kuibyshev refinery forced to shut down half of its capacity due to a fire.

Macquarie forecasts a 300,000 bpd increase in US refinery crude runs next week, coupled with a 500,000 bpd decrease in domestic supply. Meanwhile, the United Nations Security Council passed a resolution on Monday, urging a ceasefire between Israel and Palestinian militants Hamas, with the US abstaining from the vote. However, analysts doubt that a ceasefire would halt Houthi attacks disrupting shipping routes in the Red Sea.