WTI attempts to extend gains on robust manufacturing data, holds position above $83.50

West Texas Intermediate (WTI) oil price remains on the defensive at around $83.50 per barrel during the Asian trading hours on Tuesday. However, Crude oil prices are on the rise due to robust manufacturing data from both the United States (US) and China, exceeding expectations. The expansion of manufacturing activity in both countries during March is seen by markets as a positive signal for increased oil demand.

Furthermore, Crude oil prices receive additional upward support from a Reuters survey indicating a decline in oil output from the Organization of the Petroleum Exporting Countries (OPEC) in March. Iraq and Nigeria have reduced their oil exports, aligning with ongoing voluntary supply cuts by certain members in agreement with the broader OPEC+ alliance. The group produced 26.42 million barrels per day (bpd) last month, representing a decrease of 50,000 bpd compared to February.

OPEC+ is set to convene for a joint ministerial meeting on Wednesday, where market fundamentals and member adherence to production targets will be evaluated. There is widespread anticipation that current output policies will be maintained.

According to Patrick De Haan, a petroleum analyst at GasBuddy.com, the US market could see gasoline prices spike by up to 15 cents per gallon due to tighter global fuel supplies following Ukraine's recent attacks on Russian refineries.

Ukrainian drone strikes have severely impacted several Russian refineries, resulting in a reduction in Russia's fuel exports. These attacks have caused nearly 1 million barrels per day of Russian crude processing capacity to become inactive.