Oil rises on China's rising demand outlook and Turkey's post-earthquake supply concerns
Oil prices rose for the second consecutive session on Tuesday amid optimism about the recovery of demand in China and concerns over supply shortages following the closure of a major export terminal following the earthquake in Turkey.
Brent crude futures rose 82 cents, or 1.01%, at 0300 GMT to $81.81 per barrel, while West Texas Intermediate (WTI) futures rose 82 cents, or 1.11%, to $74.93 per barrel.
Crude oil prices are rising amid expectations of continued Chinese recovery and supply disruptions caused by the earthquake that devastated Turkey.
The head of the International Energy Agency (IEA) said on Sunday that he expects half of the increase in global oil demand this year to come from China, adding that demand for jet fuel is increasing.
Saudi Arabia, the world's largest oil exporter, has increased its flagship crude oil prices for the first time in six months for Asian buyers amid expectations of a recovery in oil demand, particularly from China.
Operations at Turkey's 1 million bpd oil export terminal in Ceyhan were halted after a major earthquake hit the region. The BTC terminal, which exports Azeri crude oil to international markets, will be closed on February 6-8.
The closure of the 535,000 barrels per day Johan Sverdrup oil field phase 1 in Norway's North Sea region is also one of the main drivers of rising prices.
Analysts said oil markets will closely monitor US Federal Reserve Governor Jerome Powell's speech on Wednesday. Rate hikes typically strengthen the dollar, making crude oil more expensive for buyers who don't trade in the US dollar.
The recovery in oil prices appears to be a cautious move ahead of Powell's speech tomorrow, where the Fed may give more clues about future rate hike policy.
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