Oil resumes rally, rises near 7-year high

Oil prices rose on Tuesday, and resumed rally after taking a pause yesterday, with the US crude jumping near its 7-year peak, and Brent crude rising near its 3-year high, due to concerns over a market deficit while the global demand accelerates.

US crude rose 1.5% to $83.52 a barrel, after opening at $83.52, and hit a low at $82.08, and Brent crude rose 1.1% to $85.08 a barrel, after opening at $84.22, and hit a low at $83.86.

The US crude lost 0.25% yesterday, on profit-taking from 7-year high at $83.85.

Brent fell more than 0.9%, after hitting the highest since October 2018 at $86.02.

Oil prices are rising due to growing fears over a market deficit, especially after OPEC Plus alliance's recent decision to keep its current production policy without any new production hikes.

Meanwhile, global demand for oil is growing, especially due to the global shifting from gas to oil, after the recent record spike in natural gas prices.