SINGAPORE, June 14 Reuters Oil prices rose about 1 in volatile trade on Tuesday as tight global supplies outweighed worries that fuel demand would be hit by a possible recession and fresh COVID19 curbs in China.
U.S. West Texas Intermediate WTI crude rose 96 cents, or 0.8 to 121.89 a barrel at 0634 GMT, while Brent crude futures rose 1.05, or 0.9, to 123.32 a barrel.
Tight global supplies have been aggravated by a drop in exports from Libya amid a political crisis that has hit output and ports, while other producers in OPEC struggle to meet their production quotas and Russia faces bans on its oil over the war in Ukraine.
ANZ Research analysts cited Libya39;s oil minister Mohamed Aoun saying production in the country has dropped to 100,000 barrels per day from 1.2 million bpd last year.
The continuing squeeze on refined products globally, as well as a lack of investment to bring online more supplies from OPEC members, or other sources, means lost Russian production is nowhere near being covered by global markets, said Jeffrey Halley, senior market analyst at OANDA, in a note.
The market will be awaiting weekly U.S. inventory data from the American Petroleum Institute on Tuesday and the U.S. Energy Information Administration on Wednesday for a view of how tight crude and fuel supply remain.
Six analysts polled by Reuters expect U.S. crude inventories fell by 1.2 million barrels in the week to June 3, while forecasting that gasoline stockpiles rose by about 800,000…