WASHINGTON (dpa-AFX) - Oil edged higher on Tuesday as supply from producer countries remained tight. The upside remained capped by fears over demand as Covid-19 cases rise across Europe.
China is also battling its biggest COVID-19 outbreak caused by the highly transmissible Delta variant.
Brent futures for January delivery rose 56 cents, or 0.7 percent, to $82.61 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 52 cents, or 0.6 percent, at $80.27.
Global oil markets remain very tight by all measures as demand returns to pre-pandemic levels.
While the momentum behind the price rally has tempted some forecasters to predict a return to $100-a-barrel oil, the International Energy Agency said in its closely-watched monthly report on Tuesday that a reprieve from the price rally could be on the horizon.
'Contrary to hopes expressed in Glasgow at COP26 this is not because demand is declining, but rather due to rising oil supplies,' it was said.
Last week, U.S. energy firms added oil and natural gas rigs for a third week in a row, encouraged by a 65 percent increase in U.S. crude prices so far this year.
U.S. shale production in December is expected to reach pre-pandemic levels of 8.68 million barrels a day, according to Rystad Energy.
On the Covid-19 front, the U.S. Centers for Disease Control and Prevention on Monday moved four European destinations to its highest-risk category for travel - a reflection of the growing concern over rising cases in Europe.
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