Crude oil inched jumped more than 2 per cent on Tuesday in anticipation of tighter supply from theUS Gulf Coast as Tropical Storm Laura was forecast to become a major hurricane. Brent crude futures - the global benchmark for crude oil - jumped as much as $0.92, or 2.04 per cent, to touch $46.05 per barrel during the session, having started the day flat at $45.12 compared to Monday's close of $45.13 per barrel. However, increasing COVID-19 cases across the globe limited the gains.
Brent crude was last seen trading 1.66 per cent higher at $45.88 per barrel, while WTI crude - the benchmark for US crude oil - was up 1.10 per cent at $43.09 per barrel.
The Intercontinental Exchange (ICE)'s Brent futures are considered a benchmark for global oil markets, besides the New York Mercantile Exchange (Nymex)'s WTI crude futures.
Energy companies cut output at US Gulf Coast oil refineries on Monday after shutting 82 per cent of the area's offshore crude oil output as a rare double-storm assault on US oil regions threatened heavy rains and strong winds.
Earlier, crude oil prices had clocked three straight weekly gains, amid efforts by top producers to cut output on concerns about recovery from the damage caused by the coronavirus pandemic-related lockdowns.
Analysts expect oil prices to move sideways for the time being amid increasing COVID-19 cases around the world.
“NYMEX crude trades moderately higher near $42.4/oz as support from storm concerns in Gulf of Mexico and upbeat US economic data is countered by rise in US crude oil rig count and some stability in the US dollar index,” said Ravindra Rao, VP-head commodity research at Kotak Securities.
"Crude may remain rangebound unless there are fresh triggers, however storm-related concerns and optimism about the US economy may lend some support," he said.
Meanwhile, domestic petrol prices were raised in the metros for the sixth consecutive day, whereas diesel rates were left unchanged. State-run oil marketing companies such as Indian Oil Corporation review the rates on a daily basis, and implemented any changes with effect from 6 am.
India is the world's third largest importer and consumer of crude oil. (Also Read: India's Crude Oil Imports Hit Over 5-Year Low In June)