SINGAPORE: Oil prices were stable early on Tuesday, supported by a tightening market due to ongoing Opec-led efforts to cut supplies, although the prospect of rising US shale output dragged. Brent crude futures, the international benchmark for oil prices, were at $60.84 per barrel at 0027 GMT. That was slightly below their last settlement, but close to the highest level since July 2015 and up some 36 per cent since their 2017-lows last June.
US West Texas Intermediate (WTI) crude futures were at $54.04 a barrel, 11 cents below their last close but near their highest level since February and up around 28 per cent since 2017-lows in June.
Traders said that bullish sentiment had driven Brent above $60 per barrel, fuelled by an effort led by the Organization of the Petroleum Exporting Countries (Opec) and Russia to hold back about 1.8 million barrels per day (bpd) in oil production to tighten markets and prop up prices.
The pact runs to March 2018, but Saudi Arabia and Russia have voiced support to extend the agreement.
Opec is scheduled to meet officially at its headquarters in Vienna, Austria, on November 30.
“Oil is higher again as the market, and sentiment moves in Opec’s favour,” said Greg McKenna, chief market strategist at futures brokerage AxiTrader.
— Reuters
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