Crude oil futures settled notably higher on Tuesday, recovering well after early struggling earlier in the session amid concerns over inflation.
Reports that suggested Colonial Pipeline might re-open its key U.S. pipeline by the end of the week weighed as well on oil prices earlier in the day.
According to reports, the operator of Colonial Pipeline said that one of its lines has been partially restored and that a phased approach has been executed to facilitate a return to service by the end of the week.
A report from the Organization of the Petroleum Exporting Countries (OPEC) that said demand will rise by 5.95 million barrels per day (bpd) or 6.6% this year, supported oil prices.
West Texas Intermediate Crude oil futures for June ended up by $0.36 or about 0.6% at $65.28 a barrel.
OPEC's forecast is unchanged from the previous month. The agency is optimistic about energy demand despite "significant uncertainties," mainly around the pandemic.
In the report, OPEC cut its oil demand forecast for the second quarter by 300,000 bpd, but raised its estimate for the third quarter by 150,000 bpd and by 290,000 bpd for the last three months of 2021.