Oil prices hold high pace and level owing to high demand clearly shown by a fall in US crude stockpiles. Moreover, underlying concerns about tight supply are stirring in oil markets as investors await the outcome of today's meeting of the Organization of Petroleum Exporting Countries and its OPEC+ allies, reports Reuters.

A barrel of European reference oil Brent trades Monday morning for USD 89.52 against USD 89.41 Tuesday afternoon. US counterpart West Texas Intermediate sells concurrently for USD 88.53 against USD 88.24

"A drop in US crude inventories provided support, though an increase of gasoline stocks partially offset bullish sentiment," oil analyst Satoru Yoshida tells the news agency.

US crude inventories dropped by 1.6 million barrels in the week up to Jan. 28 against the analyst forecast of stockpiles rising by 1.5 million barrels. Gasoline inventories, on the other hand, swelled by 5.8 million barrels. Analysts had projected a rise of 1.6 million barrels.

Persisting political tensions in Eastern Europe and the Middle East continue to cause uncertainty on oil supply. Altogether, Reuters deems the geopolitical conflicts to have acted as a catalyst for rising oil prices, boosting these by around 15 percent this year.

OPEC+ is expected to stick to its plans to gradually raise output.

Wednesday morning, one troy ounce of gold changes hands for USD 1,789.91 Wednesday morning against USD 1,806.69 Tuesday afternoon.

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