The West Texas Intermediate for November delivery added 52 cents to settle at 82.96 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for December delivery increased 75 cents to close at 85.08 dollars a barrel on the London ICE Futures Exchange.
Both crude benchmarks were near their multi-year highs as the oil market is expected to remain tight for the time being.
"The restrictive production policy pursued by OPEC+ is partly responsible. The agreed increase in output by 400,000 barrels per day each month will not be enough as things currently stand to plug the gap between demand and supply," Carsten Fritsch, energy analyst at Commerzbank Research, said Tuesday in a note.
The OPEC and the IEA in their respective monthly reports last week saw oil market as being noticeably undersupplied in short term.
Traders are awaiting data on U.S. crude stockpiles as the U.S. Energy Information Administration is set to release its weekly petroleum status report on Wednesday.
Analysts surveyed by S&P Global Platts forecast the U.S. crude supplies to show a climb of 2 million barrels for the week ending Oct. 15.
Latest comments