Mubasher: Oil prices traded higher on Tuesday amid geopolitical tensions in the Middle East and ahead of preliminary stockpile data in the US.

By 11:19 am GMT, Brent crude and US crude (Nymex) gained 0.34% each to $65.77 per barrel (pb) and $70.36 pb, respectively.

Oil prices tend to rise on geopolitical tensions, particularly those involving major oil producers as relations seem sour between Saudi Arabia and Iran on one hand, and the Kingdom and Yemen on the other.

Later on Tuesday, the American Petroleum Institute (API) will disclose the preliminary oil output data, while the Energy Information Administration (EIA) will report the official data on Wednesday.

On Monday, Russian energy minister Alexander Novak said that his country’s withdrawal from the agreement made by members and non-members of the Organization of Petroleum Exporting Countries (OPEC) is too early but should that event take place, it will be gradual.

On another note, media reported that oil levels were nearing a five-year average level in countries under the Organisation for Economic Co-operation and Development (OECD), which is a major highly sought after threshold for rebalancing the oil market.