WASHINGTON (dpa-AFX) - Oil prices rose for a third straight session on Tuesday after Libya and Ecuador flagged potential output cuts on political unrest and the United Arab Emirates' Energy Minister said the nation has no spare capacity.
Investors also pinned hopes for improved demand in China after the country halved the length of mandatory quarantine for inbound travelers, in the biggest relaxation of entry restrictions after sticking to a rigid COVID policy throughout the pandemic.
Benchmark Brent crude futures jumped 1.5 percent to $112.60 a barrel, while WTI crude futures rose 1.3 percent to $111.02.
Analysts have warned that political unrest in Ecuador and Libya could tighten supply further.
Libya's National Oil Corp said on Monday it might have to halt exports in the Gulf of Sirte area within 72 hours amid unrest that has restricted production.
Ecuador's Energy Ministry said the country could suspend oil output completely within 48 hours, if road blocks and vandalizing of oil wells continue.
Separately, UAE Energy Minister said the country is producing near to the maximum production capacity based on its current OPEC+ production baseline (3,168 mbopd) which UAE is committed by until the end of the agreement.
A U.S. official said today that the Group of Seven nations have agreed to work on a price cap for Russian oil.
NATO's summit will see its 30-member countries meet in Span today with the war in Ukraine top of the agenda.
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