Oil edges up to two-week high on lower US output forecast, renewed Red Sea attacks
Oil prices edged up to a two-week high on Tuesday on forecasts for less U.S. oil production, renewed Houthi attacks on shipping in the Red Sea, worries about U.S. tariffs on copper and technical short covering.
Brent crude futures rose 57 cents, or 0.8%, to settle at $70.15 a barrel, while U.S. West Texas Intermediate (WTI) crude closed at $68.33, up 40 cents, or 0.6%.
Those were the highest closes for both crude benchmarks since June 23 for a second day in a row.
The U.S. will produce less oil in 2025 than previously expected as declining oil prices have prompted producers to slow activity this year, according to the latest Energy Information Administration (EIA) outlook.
U.S. President Donald Trump said on Tuesday he will announce a 50% tariff on copper later in the day, aiming to boost U.S. production of a metal critical to electric vehicles, military hardware, the power grid and many consumer goods.
Trump's decision to impose copper tariffs surprised markets and boosted prices of the metal to a record high.
In the Red Sea, three seafarers on the Liberian-flagged, Greek-operated bulk carrier Eternity C were killed in a drone and speedboat attack off Yemen, the second incident in a day after months of calm.
Attacks in the Red Sea have forced vessels carrying oil, liquefied natural gas and other energy products to travel long distances to avoid the region, boosting energy costs.
Some analysts also noted the oil market was supported by technical short-covering after Brent prices traded over $70 a barrel, a key level of both psychological and technical resistance.
In addition, energy traders noted rising prices for U.S. gasoline and diesel in recent weeks have boosted the diesel crack spread to its highest since March 2024 and the 3:2:1- crack spread to a six-week high. Crack spreads measure refining profit margins.
Source : Reuters
