Crude oil prices remained steady overnight Monday and edged up slightly on Tuesday as the ongoing refined product supply squeeze keeps oil prices elevated, OANDA analyst Jeffrey Halley said in a Tuesday note.
In addition, a lack of investment to boost supplies from members of the Organization of the Petroleum Exporting countries or other sources means global markets are struggling to make up for lost Russian production, Halley noted.
Libyan production has also dropped to 0.10 million barrels per day, from 1.1 million b/d, which is also providing support to prices especially amid the current market situation, according to Halley. Prices in Asian trade are rising as regional buyers get impatient waiting for a risk-aversion dip to arrive, Halley said.
As the crude demand outlook remains strong and supplies are down, even a little extra supply from Saudi Arabia would not cause a sharp dip in prices, OANDA analyst Edward Moya said in a separate note overnight Monday. Traders will expect to see some extra production from Saudi Arabia if US President Joe Biden pushes through with a visit to the kingdom next month, Moya said.
Source: Tradingview.com