Crude oil futures settled sharply higher on Tuesday after the monthly report from the Organization of the Petroleum Exporting Countries (OPEC) showed the oil market is going to be a lot tighter than initially thought. OPEC now expects a 3.3 million barrels a day deficit over the next 3 months, which is one million more bpd of a deficit than some energy traders were anticipating. Further, worries about fresh disruption from powerful storms and floods in eastern Libya contributed as well to the rise in oil prices. Four major oil ports in Libya - Ras Lanuf, Zueitina, Brega and Es Sidra - were closed from Saturday evening for three days, due to flooding and a storm, which killed about 2,000 people.
Benchmark crude oil futures for October delivery surged $1.55 or 1.8 percent to settle at $88.84 a barrel on the New York Mercantile Exchange. Brent crude for November delivery climbed $1.42 or 1.6 percent to settle at $92.06 a barrel on London's Intercontinental Exchange.