Oil futures headed higher on Tuesday, shaking off their losses from a day earlier to resume the rally they started the year with, buoyed by expectations for stronger demand.

Crude oil was lower in Europe and ICICI Securities said prices are likely to slip further on demand concerns and expectations the market will remain in surplus despite OPEC+ members delaying production increases.

Oil prices rose on Wednesday as supplies from Russia and OPEC members tightened, while data showing an unexpected increase in U.S. jobs openings pointed to expanding economic activity and consequent growth in oil demand.

Oil futures on Tuesday marked their highest settlement since October, posting their sixth gain in seven sessions. A lot of the recent trade activity has been driven by “hedge