Feb 22 (Reuters) - U.S. oil producer APA Corp on Wednesday posted a quarterly profit that topped Wall Street expectations, as higher demand amid tight supplies boosted crude prices.

Prices of global benchmark Brent crude averaged at about $88.63 per barrel for the October-December quarter, about 11% higher compared with the same period a year earlier, as Western sanctions on Russia as well as production cuts by OPEC+ kept crude prices higher.

APA said its total production for October-December quarter rose 7% to 414,435 barrels of oil equivalent per day (boepd), while average oil prices climbed to $86.17 per barrel from $78.52.

The company reiterated its full-year 2023 upstream capital budget of $2 billion to $2.1 billion and expects adjusted barrels of oil equivalent growth of 4% to 5%, and oil growth of more than 10% in the year.

"This year our emphasis will be on higher-margin oil development," APA Chief Executive Officer John Christmann said in a statement.

The Houston, Texas-based firm reported an adjusted profit of $1.48 per share for the three-months ended Dec.31, compared with the average analyst estimate of $1.29 per share, according to Refinitiv IBES data. (Reporting by Arunima Kumar in Bengaluru; Editing by Shinjini Ganguli)