Oil prices rose after falling earlier hours on Tuesday and appear poised to continue the strong demand-driven rally in the United States, the world’s largest consumer of oil and products.

Brent crude rose 13 cents, or 0.2%, to $86.12 a barrel at 0427 GMT after gaining 0.5% on Monday. West Texas Intermediate (WTI) oil rose 5 cents, or 0.1%, to $83.81 a barrel after testing new highs.

While China’s hot energy and coal markets have eased somewhat after government intervention, energy prices remain high worldwide as temperatures drop with the onset of northern hemisphere winter.

According to forecasts, November will be a cold month and energy traders are preparing for a very tight market this winter, which will be met with generally high demand. Meaning oil market will remain tight and $90 is not far away. Brent is very likely to exceed its year-end forecast of $90 per barrel.

Limited global oil supply and signs of rising demand will continue to cause crude oil prices to rise.

Gasoline and distillate consumption is at par with five-year averages in the United States after more than a year of decline in demand.

The market will closely monitor US oil stock levels this week. According to analysts, crude oil inventories were expected to increase by 1.7 million barrels last week, while gasoline and distillate inventories were expected to fall.

Efforts to revive the US’s 2015 nuclear deal with Iran are at an important stage and could pave the way for the export of crude oil. Traders await clarity on the outcome of talks between Iran and the Western powers.