Oil inched up on Tuesday, sticking to its solid gains that opened the week with, backed up by the projections of enhanced demand in China before the release of Fed speech.

U.S. crude futures advanced by 0.6% at $75.08 per barrel, while the Brent contract added 0.4% to $79.99 per barrel.

The two main gauges jumped 1% earlier on Monday, following the Chinese borders reopening that took place during the last weekend post 3 years closure.

Moreover, the purchase appetite soared following the issuance of Beijing for crude import quotas with a level that way exceeds the earlier year, which boosted the sentiments of a soon revived demand in China in 2023.

It is forecasted that the demand for crude worldwide will see a growth of 1.7 million barrel per day, where half of them will be demanded by China.

Speaking of the supply aspect, G7 reported that  the group will supposedly announce by the next month two prices cap for the refined products supplied by Russia.

There are some indications that manifest that Russia is encountering some difficulties to sell its oil since the price cap has been imposed by the G7 in December which means that Russia may trim its supplies if the situation continued this way.