NEW YORK: Oil prices settled mixed on Tuesday, as prospects of tight inventories worldwide were offset by forecasts of a production increase in coming months and concerns over rising coronavirus cases in Europe.
Brent crude rose 38 cents, or 0.5%, to US$82.43 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 12 cents, or 0.2%, to $80.76 a barrel.
"The oil market will remain tight in the short term, which should lend support to prices," said Commerzbank analyst Carsten Fritsch.
Trafigura Group's Chief Executive Officer Jeremy Weir said the tightness in global oil markets was due to demand returning to pre-pandemic levels.
Oil output from Texas' Permian basin was forecast to reach a record 4.953 million barrels per day (bpd) in December.
U.S. crude stocks were expected to have risen for a fourth straight week, with analysts in a Reuters poll forecasting a build of about 1.4 million barrels last week. [EIA/S]
The first of two weekly supply reports, from industry group the American Petroleum Institute, is due later Tuesday.
However, the International Energy Agency (IEA) said the oil market rally may ease as high prices could provide a strong incentive to boost production, particularly . - Reuters