2024.03.1919:03:00UTC+00Oil Futures Settle Notably Higher For 2nd Straight Day

Crude oil futures settled higher on Tuesday, rising for a second straight day, as traders continued to assess the impact of Ukrainian attacks on Russian refineries on oil supplies.

With Ukraine continuing to attack Russian oil facilities, Russian refining capacity has already dropped by about 7% or approximately 370,500 barrels per day, according to a report by Reuters.

Oil prices were also supported by Iraq's decision to reduce crude exports to 3.3 million barrels per day in the coming months, in order to comply with its OPEC+ quota.

Signs of stronger demand from the U.S. and China contributed as well to the rise in oil prices. China has reported a 7% increase in industrial output in January-February combined, faster than the 6.8% growth in December 2023. Industrial output was expected to rise 5% in January-February.

West Texas Intermediate Crude oil futures for April ended higher by $0.75 at $83.47 a barrel.

Brent crude futures were up $0.51 at $87.40 a barrel a little while ago.

Traders now await the release of inventory reports from the American Petroleum Institute (API) and the Energy Information Administration (EIA) for further direction. The API report is due later today, while the EIA will release its inventory data Wednesday morning.