Brent crude futures were higher by $2.98 or 3.03% to $101.46 a barrel, and U.S. West Texas Intermediate was up $3 or 3.18% to $97.29 a barrel at 0640 GMT. Both contracts had dropped down about 4% on Monday.
Shanghai stated on Monday that more than 7,000 residential units had been organized as lower-risk areas after reporting no new infections for 14 days, and districts have since been announcing which combinations can be opened up.
The European Union is preparing proposals for an EU oil embargo on Russia in the wake of its invasion of Ukraine, some foreign ministers spoke on Monday. Nevertheless, there is currently no agreement among members on crude from Russia, which names its actions in Ukraine a “special operation.”
Crude Oil Inventories on The Rise
Tuesday’s peak in oil markets also followed a warning from the Organization of the Petroleum Exporting Countries (OPEC) that some 7 million barrels per day of Russian oil and other liquids exports could be relinquished due to sanctions or voluntary actions impossible to replace those volumes.
IEA member nations intend to release some 240 million barrels over the next six months to help calm the market, of which 180 million will be dismissed from U.S. stockpiles at a rate of 1 million BPD beginning in May.
A preliminary Reuters poll showed 8849. U.S. crude oil inventories likely rose by 1.4 million barrels in the week to April 8 after dropping for three straight weeks.
The poll was completed ahead of a report from the American Petroleum Institute due at 4:30 p.m. EDT (2030 GMT) on Tuesday.