Oil prices increased on Tuesday for the second consecutive day, as investors anticipate a reduction in supply in the market amid a seasonal rise in gasoline demand in the United States and a decline in production from OPEC+ nations. Brent crude futures rose by 20 cents, or 0.3%, to $76.19 per barrel by 00:52 GMT, while U.S. West Texas Intermediate (WTI) crude climbed 21 cents, or 0.3%, to $72.26 per barrel.
Brent crude rose 0.5% on Monday, and WTI increased by 0.6%, following a 2.8% rise in gasoline futures in the U.S. ahead of Memorial Day on May 29, which typically marks the beginning of the peak summer fuel demand season.
Last week, the U.S. Department of Energy announced that it would purchase three million barrels of crude oil to refill the Strategic Petroleum Reserve for delivery in August. Additionally, voluntary production cuts announced by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, under the OPEC+ alliance are expected to reduce supply in the oil markets. These cuts took effect this month.
Investors are also focusing on negotiations to raise the debt ceiling in the United States, the world's largest oil consumer.
