Oil jumps almost 3% as tight supply moves back into focus | Reuters

Oil jumps almost 3% as tight supply moves back into focus | Reuters

Oil rose almost 3% on Tuesday as tight supply moved back into focus as a result of Saudi Arabia floating the idea of OPEC+ output cuts to support prices and the prospect of a drop in U.S. crude inventories.

The Saudi energy minister said OPEC+ had the means to deal with challenges including cutting production, state news agency SPA said on Monday, citing comments Abdulaziz bin Salman made to Bloomberg in an interview. read more

Global benchmark Brent crude gained $2.52, or 2.6%, to $99.00 a barrel by 1345 GMT. U.S. West Texas Intermediate crude rose $2.34, or 2.6%, to $92.70.

"Whether cutting OPEC or OPEC+ output after September is justified is debatable," said Tamas Varga of oil broker PVM. "Despite the recent inflation-induced weakness, the oil market seemed to have found a bottom lately."

Oil has soared in 2022, coming close in March to an all-time high of $147 after Russia's invasion of Ukraine exacerbated supply concerns. Concern about a global recession, rising inflation and weaker demand has since weighed on prices.