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Brent crude rose $1.54, or 1.4%, to $114.02 a barrel by 1110
GMT, and U.S. West Texas Intermediate (WTI) crude was up $1.34,
or 1.3%, at $107.30. Both benchmarks had lost about 7% on
Monday.
"There was an overreaction on Monday and the market is
re-considering it," UBS analyst Giovanni Staunovo said.
"Oil production disruption in Russia finally become visible,
Kazakh crude production took a hit in recent days, and gasoline
and jet demand in Europe and the United States is still solid."
Kazakhstan is set to lose at least a fifth of its oil production
for a month after storm damage to mooring points used to export
crude from the Caspian Pipeline Consortium (CPC), the energy
ministry said.
The producer group OPEC+ was also expected to stick to its plan
for a modest rise in May at this week's meeting, despite a surge
in prices due to the Ukraine crisis and calls from the United
States and other consumers for more supply.
United Arab Emirates energy minister Suhail al-Mazrouei said on
Tuesday that the mission of OPEC+ was to stabilise markets and
come up with as much supply as possible.
He said squeezing any partner out of the oil alliance, which
includes the Organization of the Petroleum Exporting Countries,
Russia and others, would only increase prices.
Oil prices had come under pressure earlier on Tuesday, falling
as much as $2, ahead of peace talks between Ukraine and Russia
to be held in Turkey on Tuesday, the first discussions in more
than two weeks.
Sanctions imposed on Russia over its invasion of Ukraine have
disrupted oil supplies, driving prices higher.
But a lockdown in Shanghai to curb rising coronavirus cases was
expected to hit fuel demand in China, the world's biggest
importer. Shanghai accounts for about 4% of China's oil
consumption, ANZ Research analysts said.
"China’s zero-COVID policy is bringing some relief to the oil
market, albeit involuntarily, which is very tight due to the
supply outages from Russia," said Commerzbank analyst Carsten
Fritsch.
(Reporting by Yuka Obayashi in Tokyo and Bozorgmehr Sharafedin
in London; Additional reporting by Sonali Paul in Melbourne;
Editing by Edmund Blair, Kirsten Donovan)
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