Oil rises nearly 2% as investors size up tight market | Reuters

Oil rises nearly 2% as investors size up tight market | Reuters

Oil prices gained almost 2% on Tuesday after the International Energy Agency said the market should expect tighter supply for now due to disagreements among major producers over how much additional crude to ship worldwide.

The market has been generally stronger as demand has rebounded and the Organization of the Petroleum Exporting Countries and their allies have held millions of barrels of supply from the market. OPEC+, as the group is known, was expected to boost supply, but discussions broke off without an agreement.

Brent crude rose $1.33, or 1.8%, to settle at $76.49 a barrel, while U.S. West Texas Intermediate crude rose $1.15, or 1.6%, to settle at $75.25 a barrel.

The Paris-based IEA said global storage drawdowns in the third quarter were set to be the biggest in at least a decade, citing early June stock draws from the United States, Europe and Japan.

“You’re still not going to have enough crude oil on the market to avoid a supply deficit by the end of the year. That was definitely a tailwind for the market,” said Bob Yawger, director of energy futures at Mizuho.