Oil prices rise on slow OPEC output increase | Reuters

Oil prices rise on slow OPEC output increase | Reuters

Oil prices rose on Tuesday as key producer group OPEC undershot its expected pace of output increases last month, while the world's top oil consumer China ramped up operating rates to meet a spike in diesel demand.

Brent crude futures gained 28 cents, or 0.3%, to $84.99 a barrel by 0744 GMT, while U.S. West Texas Intermediate (WTI) crude futures climbed 6 cents, or 0.1%, to $84.11 a barrel.

"Crude prices still seemed poised to head higher, with some traders waiting for confirmation after both the EIA crude oil inventory shows demand for most products are headed in the right direction, while U.S. production is stable and with OPEC+ sticking to their gradual 400,000 bpd increase plan," said Edward Moya, senior analyst at OANDA.

Oil rallied to multi-year highs last week, helped by a post-pandemic demand rebound and the Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+, sticking to gradual, monthly production increases of 400,000 barrels per day (bpd), despite calls for more oil from major consumers.