tawandamusarurwa
Oil hovered around three-month highs on Tuesday as investors focused on tightening global supplies and demand growth in the second half of the year.
Brent crude futures for October were at $85,43 a barrel at 1152 GMT, down 20 cents. Front-month Brent settled at its highest since April 13 on Monday.
US West Texas Intermediate crude futures were at $81,53 a barrel, down 27 cents from the previous session’s settlement, which was its highest since April 14.
“Oil prices may face a correction risk as the markets may have been overbought in the past month,” said Tina Teng, an analyst at CMC Markets.
PVM analyst Tamas Varga noted that for months, predictions have been made that global oil demand will grow in the second half of 2023, versus the first half, in tandem with supply cuts to reduce global oil inventories.
Recession worries made investors more cautious earlier in the year, he said. – Reuters
Bongani Ndlovu
Online Reporter