Crude oil prices climbed higher on Tuesday as prospects of increased demand from China following relaxations of lockdown restrictions, and supply concerns outweighed concerns about growth.
The U.S. Energy Information Administration (EIA) has projected that U.S. crude production and petroleum demand will both rise in 2022.
Oil prices moved higher despite a recent decision by the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, to increase output in July and August by 648,000 barrels per day, or 50% more than previously planned.
West Texas Intermediate Crude oil futures for July ended higher by $0.91 or about 0.8% at $119.41 a barrel.
Brent crude futures were up $1.81 or 1.51% at 121.32 a barrel a little while ago.
The World Bank has slashed its global growth forecast to 2.9% for 2022, lowering its earlier forecast by nearly a third, warning that Russia's invasion of Ukraine has compounded the damage from the coronavirus pandemics. The World Bank said many countries are now facing recession.
Meanwhile, markets await weekly oil reports from the American Petroleum Institute (API) and EIA. The API's report is due later today, while the EIA is scheduled to release its weekly inventory data Wednesday morning.
