SEOUL: Oil futures rose on Tuesday for a third session, underpinned by robust demand forecasts and as ministers from Opec touted the strength of its agreement to cut output to bolster prices.
International benchmark Brent crude futures were at$65.67 per barrel at 0743 GMT, up 8 cents, or 0.12 per cent. US West Texas Intermediate (WTI) crude futures were at $62.68 a barrel, up 11 cents, or 0.18 per cent.
The International Energy Agency (IEA) said on Monday that global oil demand was expected to grow over the next five years, while output from producers in the Organization of the Petroleum Exporting Countries (Opec) would rise at a much slower pace.
The IEA’s comments on increased demand, made during the CERAWeek conference in Houston on Monday, preceded statements from Opec Secretary-General Mohammed Barkindo that called the supply cut agreement with global producers “as solid as the Rock of Gibraltar”.
“Oil was higher as the prospects for increased demand and a little bit of jawboning at the CERAWeek conference helped,” Greg Mckenna, chief market strategist at AxiTrader, said in a note.
To fill the gap between Opec and global demand, the IEA said the United States would supply much of the oil demand as its shale oil production was set to surge. — Reuters
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