Oil nudges higher as supply worries offset concerns about demand

Oil prices edged higher for a second consecutive session on Tuesday, as worries about political instability in Russia and potential supply disruptions counter-balanced concerns about global demand.

Brent crude futures rose 6 cents to $74.24 a barrel, while U.S. West Texas Intermediate (WTI) futures gained 10 cents to $69.47 a barrel. On Monday, Brent had climbed 0.5 percent and the WTI 0.3 percent.

A clash between Moscow and Russian mercenary group Wagner was averted on Saturday after the heavily armed mercenaries withdrew from the southern Russian city of Rostov under a deal that halted their rapid advance on the capital.

The challenge has raised questions about President Vladimir Putin’s grip on power and some concern about possible disruption of Russian oil supply.

Lower supply has already been on investors’ minds due to Saudi Arabia’s pledge to cut output from July.

Oil fell around 3.6 percent last week on worries that further interest rate hikes by the U.S. Federal Reserve could sap oil demand at a time when China’s economic recovery has disappointed investors.