The cost of crude oil significantly increased in Tuesday's trade, more than compensating for the major decline witnessed during the previous trading session.
Crude oil for March delivery increased by $1.04, or 1.4%, to land at $77.82 per barrel, a rebound from Monday's market session when it plummeted by $1.23, or 1.6%, to $76.78 per barrel.
This surge in crude oil prices is partially credited to the International Monetary Fund (IMF) revising its 2024 growth estimate for the global economy. The January update of the IMF's World Economic Outlook report discloses a projected global economic growth rate of 3.1% for this year, unchanged from 2023, yet a spike from the 2.9% growth forecast made in October.
Meanwhile, supply apprehensions linger as the market awaits the U.S.' response to a fatal assault on American troops positioned in Jordan. Media speculations hint at Republican lawmakers pressing President Joe Biden to retaliate against Iran for the drone attack on Tower 22 in Jordan, which caused casualties among U.S. military personnel.
In a related development, Saudi Aramco, the state-owned oil giant in Saudi Arabia, has announced it has been instructed by the Saudi government to maintain its oil production capacity at the level of 12 million barrels per day.
