Oil trending upwards

Oil rose to trade near its highest level this year ahead of reports that could offer more insight into market balance. U.S. crude rose to $88 a barrel after shedding 0.3 percent on Monday as technical indicators suggested earlier gains may have been overdone. The Organization of the Petroleum Exporting Countries and the U.S. Energy Information Administration are due to release their monthly market reports later on Tuesday, while the International Energy Agency is due on Wednesday. The fundamentals that have driven crude higher since June remain strong. While OPEC+ powers Russia and Saudi Arabia continue to restrict supply, the outlook for demand in top importer China is improving and the likelihood of the U.S. slipping into a painful recession is diminishing. The U.S. dollar also fell by the most in nearly two months on Monday, making commodities priced in that currency more attractive to most buyers. “The bullish momentum is over for now. Crude needs fresh cues to pick a direction. We could see a holding pattern for Brent around $90,” said Vandana Hari, founder of Vanda Insights in Singapore. Diesel is also on the rise after Russia capped exports of the global economy’s heavy fuel this month. That helped European futures surpass $1,000 a tonne for the first time since January.