Oil prices bounced back on Tuesday, recovering some of the previous day's losses, as growing tension in Eastern Europe and the Middle East fuelled concerns over possible supply disruptions in an already tight market. Brent crude futures rose $1.21, or 1.5%, to $87.52 a barrel at 0946 GMT, reversing a 1.8% fall in the previous session. US West Texas Intermediate (WTI) crude futures climbed $1.11, or 1.3%, to $85.42 a barrel, having slid 2.2% on Monday. Indicating current tight supply, Brent's six-month spread in backwardation as front month delivery futures trade at a premium of around $5 a barrel. Ahead of an expected US Federal Reserve interest rate decision on Wednesday where a hike might weigh on prices, geopolitical risks involving oil and gas producer Russia have been supporting oil prices.

Source: Dhaka Tribune January 25, 2022 12:58 UTC