Oil prices edge upward, bolstered by supply concerns | Reuters

Oil prices edge upward, bolstered by supply concerns | Reuters

Oil prices edged higher on Thursday, maintaining their upward trajectory built on expectations that supply will tighten further even after OPEC+ producers stuck to planned moderate output increases.

Tight global supplies and geopolitical tensions have boosted oil prices by about 15% so far this year. Demand remains on the upswing, with the Omicron coronavirus variation only temporarily denting consumption in major economies.

The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, agreed to stick to monthly increases of 400,000 barrels per day (bpd) in output despite pressure from consumers to raise supplies more quickly. read more

"With OPEC+ unwinding their production cuts, the group's spare capacity will fall to low levels in 2022. Hopefully by next year there are no mobility restrictions, meaning with the world still expanding oil demand will also rise next year," said Giovanni Staunovo, commodity analyst at UBS.

Brent crude was up 24 cents, or 0.3%, to $89.71 a barrel at 12:35 p.m. EST (1735 GMT). U.S. West Texas Intermediate crude rose 32 cents, or 0.4%, to $88.58 a barrel.