Brent oil rises to $87.85 per barrel

Oil prices saw a continued uptrend on Tuesday, following a rise the previous day, driven by signals of increased industrial activity in both the US and China, Azernews reports, citing foreign media sources.

Additionally, the market sentiment has been influenced by apprehensions over heightened geopolitical tensions following an Israeli attack on the Iranian consulate in Damascus.

On the London ICE Futures exchange, the price of June futures for Brent oil reached $87.85 per barrel, marking a $0.43 (0.49%) increase compared to the previous trading session's close. These contracts had risen by $0.42 (0.5%) to $87.42 per barrel on Monday.

In e-trading on the New York Mercantile Exchange (NYMEX), WTI oil futures for May surged by $0.44 (0.53%) to $84.15 per barrel. During the previous trading session, the cost of these contracts had climbed by $0.54 (0.7%) to $83.71 per barrel, marking the highest level since October 27.

Market dynamics were influenced by a report from the Institute for Supply Management (ISM), released on Monday, indicating an uptick in business activity within the US manufacturing sector. The ISM Manufacturing Index rose to 50.3 points in March from 47.8 points the previous month, crossing the 50-point threshold for the first time in 17 months.

Similarly, in China, the manufacturing purchasing managers' index (PMI) climbed to 50.8 last month, the highest level since March 2023, as announced by the country's National Statistics Office on Sunday. This marked the first time in five months that the indicator surpassed 50 points.

The oil market is eagerly awaiting updates from OPEC+. The coalition states are anticipated to uphold existing production cuts in their upcoming meeting scheduled for April 3.