Oil prices were up on Tuesday amid boost from economic growth in the United States and the risk of disruptions to supply from Venezuela and Russia.
Brent crude futures appreciated by 31 cents or 0.5 per cent to $62.38 a barrel and the US West Texas Intermediate (WTI) crude futures grew by 37 cents or 0.64 per cent to $58.38 per barrel.
The US economy grew at its fastest pace in two years in the third quarter, fueled by robust consumer spending and a sharp rebound in exports, though momentum appears to have faded amid the rising cost of living and recent government shutdown.
The increase in consumer spending was the fastest in nearly a year as households splurged on recreational goods and vehicles and traveled internationally. This was a positive for the oil market as it signaled demand.
However, other data painted a mixed picture of the economy with US consumer confidence deteriorating in December amid deepening anxiety over jobs and income while factory production was unchanged in November after declining in October.
Investors were also considering the risk of disruptions to Venezuelan supply after US President Donald Trump earlier this month announced a blockade of all oil tankers under sanctions entering and leaving Venezuela has kept vessel owners on alert.
There are rising risks that the country, which is a member of the Organisation of the Petroleum Exporting Countries (OPEC) might have to shut in some production.
Already, tanker loading in Venezuela has slowed, with most ships moving oil cargoes only between domestic ports following US action against more ships.
Disruption to Russian oil supply also supported prices after Ukrainian drone attacks damaged two vessels, two piers and sparked a fire in a village in Russia’s Krasnodar region.
In retaliation, Russian forces struck Ukraine’s Black Sea port of Odesa late on Monday and damaged port facilities and a ship, the second attack on the region in less than 24 hours.
Ukraine has also targeted Russia’s maritime logistics, focusing on shadow-fleet oil tankers that attempt to bypass sanctions on Russia.