Oil prices increasing because of instability in the region

After falling sharply in the previous session, oil prices rose in early Asian trade this week as markets balanced continued tension in the Middle East with increased OPEC supplies and demand concerns.

Tuesday, at 03:11 GMT, Brent crude futures rose 26 cents, or 0.34 percent, to $76.38 per barrel, while US West Texas Intermediate crude futures rose 20 cents, or 0.28 percent, to $70.97 per barrel.

OPEC production increased and Saudi Arabia, the largest oil exporter, cut prices sharply on Monday, causing Brent and US crude to fall.

There are concerns that the Gaza war could develop into a regional crisis that disrupts Middle Eastern oil supplies. The Israeli military said it would continue its fight against Hamas until 2024.

According to Reuters, OPEC oil production increased in December, as Angola, Iraq, and Nigeria offset Saudi Arabia and other OPEC+ members' cuts.