Oil prices rose on Tuesday after the International Energy Agency said earlier that global demand is on the rise, while an International Monetary Fund decision to hike its 2014 global growth forecasts also supported the commodity.
On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in March traded at USD95.03 a barrel during U.S. trading, up 0.47%. New York-traded oil futures hit a session low of USD93.93 a barrel and a high of USD95.46 a barrel.
The March contract settled up 0.52% at USD94.59 a barrel on Friday. There was no settlement on the NYMEX on Monday due to the Martin Luther King Jr. Day holiday.
Nymex oil futures were likely to find support at USD93.93 a barrel, the earlier low, and resistance at USD95.73 a barrel, the high from Jan. 3.
In its monthly report released earlier in the session, the IEA said that global oil demand is forecast to rise by 1.3 million barrels a day this year to 92.5 million barrels, compared to a previous estimate of 91.2 million barrels a day.
The IEA cited “stronger economic momentum as the year progresses,” as its reasoning behind the upward revision.
The agency added that oil supplies from the Organization of the Petroleum Exporting Countries rose by 310,000 barrels a day to 29.82 million barrels in December, due to higher output in Saudi Arabia.
Oil prices received an additional boost after the International Monetary Fund raised its forecast for global economic growth to 3.7% this year from a previous estimate of 3.6%, which further stoked expectations for fuel and energy demand to increase.
Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for March delivery were up 0.63% and trading at USD107.02 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD11.99 a barrel.
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