Crude oil futures ended sharply higher on Tuesday amid rising demand, and concerns about supply due to escalating geopolitical tensions. Tighter supply from Mexico also supported oil prices. According to a private report, Petroleos Mexicanos is cutting some oil exports over the next few months. Besides, recent encouraging manufacturing activity data from the U.S. and China signal a potential surge in oil demand from the two largest oil-consuming nations in the world.
Benchmark crude oil futures for May delivery rose $1.44 or about 1.72% to settle at $85.15 a barrel on the New York Mercantile Exchange. Brent crude for June delivery gained $1.53 or 1.75% to $88.94 per barrel on London's Intercontinental Exchange.