Oil prices rise as OPEC rebuffs Trump’s pressure

Catogory : Market Report

Oil edged up on Tuesday as OPEC was expected to stick to its production cuts despite pressure from U.S. President Donald Trump, when many traders were out of the office attending International Petroleum Week, a series of industry events in London, after Trump called on OPEC to ease its efforts to boost the oil market. Prices were “getting too high, “Yesterday was a typical price action you see during IP Week when you have a headline,” source said “But I don’t think it will change anything in current OPEC supply policy. Brent crude, the global benchmark, rose 64 cents, one per cent, to $65.40 around 11:55 p.m. ET (1655 GMT), after losing 3.5 percent on Monday.

U.S. West Texas Intermediate crude rose 35 cents to $55.83, after a roughly 3-percent fall. The chance of more oil from Libya and expectations of higher U.S. crude inventories limited the rally. Libya’s internationally recognized government agreed with the state oil company to reopen the country’s largest oilfield, El Sharara. U.S. Crude stocks were seen 3.6 million barrels higher in weekly inventory reports Oil is up about 20 per cent since the start of the year, when OPEC and non-member producers, such as Russia, began cutting production in an effort to reduce a global glut. Saudi Arabia and other OPEC members are likely to be cautious about relaxing their supply-cut plan, after a boost in output in the second half of last year ahead of U.S. sanctions on Iran led to a steep slide in prices.U.S. Sanctions against OPEC members Iran and Venezuela have also contributed to the gains and are providing a floor for prices,