09:00 AM EDT, 04/02/2024 (MT Newswires) -- Oil rose to the highest in more than five months early on Tuesday as supply remains tight amid signs of rising demand and geopolitical turmoil.

West Texas Intermediate crude for May delivery was last seen up US$1.28 to US$84.99 per barrel, the highest since late October, while June Brent crude, the global benchmark, was up US$1.15 to US$88.57.

The rise comes as supply remains squeezed as OPEC+ continues its voluntary cuts of 2.2-million barrels per day. The group will meet on Wednesday with no policy changes expected prior to a ministerial meeting in June. As well, Mexico also plans to limit an unspecified amount of exports as Pemex, its state oil company, opens a new refinery, according to a Bloomberg report.

Geopolitical risk is also buoying prices after Israel on Monday attacked an Iranian consulate in Syria, killing the commander of the Iranian Revolutionary Guards Corps' Quds Force in Syria and Lebanon, raising the prospect of a wider Middle East war if Iran decides on a significant response to the strike.

Israel's "actions raise the specter of a significant Iranian retaliation, as Iran's ambassador to Syria immediately pledged a harsh response. Nevertheless, Iranian Supreme Leader Ali Khamenei may seek a more cautious approach to walk a fine line between sending a tough warning message, while avoiding a response that would trigger a direct confrontation with Israel and/or the US," Helima Croft, Head of Global Commodity Strategy and MENA Research at RBC Capital Markets, said in a note.

China on the weekend reported its manufacturing sector returned to growth last month, raising demand hopes for the No.1 importer even as its key real-estate sector continues to struggle with a debt crisis, while demand from India remains solid.