Brent oil rises to almost $83 per barrel

Oil prices showed a moderate increase on Tuesday morning on persisting fears regarding fuel shortage in the world market.

Reported from Interfax that Brent's September futures rose by $0.21 (0.25%) at London's ICE to settle at $82.96 per barrel.

September futures for WTI rose by $0.24 (0.3%) and made $78.98 per barrel.

"The unquenched thirst for summer oil created a snowball effect that has led to a multi-week rally,” said Manish Raj, managing director at Velandera Energy Partners. "Export cuts from Saudi Arabia and Russia has led to Asian buyers looking for US-sourced WTI," he said.

He said the current situation is influenced by several factors, including the growing demand in the United States in summer, active economic recovery of China and positive forecast for demand in India, where demand remains limited.

The record high demand will soon lead to significant oil shortage in the market and increase in prices for Brent to $86 per barrel by the end of the year, Goldman Sachs Group analysts say.

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