Crude oil futures ended sharply higher on Tuesday on weaker dollar and reports about likely relaxation in China's Zero-Covid policy. Further, oil prices were also supported by the reduction in Organization of the Petroleum Exporting Countries (OPEC) crude output, an upward revision in oil demand forecast by the OPEC, and record US oil export data. In its monthly report, the OPEC raised its forecasts for world oil demand in the medium to longer term. It revised its previous forecast for 2023 higher by 1.4 million barrels per day, saying that the combination of a more robust recovery than previously expected and a global shift toward prioritizing energy security over an energy transition will drive this demand growth.
Benchmark crude oil futures for December delivery rose $1.84 or about 2.1 percent at $88.37 a barrel on the New York Mercantile Exchange. Brent crude for January delivery surged $2.05 or about 2.21 percent to settle at $94.86 (Provisional) a barrel on London's Intercontinental Exchange.