SINGAPORE: Oil markets were split on Tuesday, with US crude was pushed up by reduced flows from Canada while international Brent prices eased. US West Texas Intermediate (WTI) crude futures were at $62.16 a barrel at 0153 GMT, up 48 cents, or 0.8 per cent, from their last settlement.
Traders said the higher WTI prices were a result of reduced flows from Canada’s Keystone pipeline, which has been operating below capacity since late last year due to a leak, cutting Canadian supplies into the United States.
Brent crude eased on the back of a dip in Asian stocks and a stronger dollar, which potentially curbs demand as it makes fuel more expensive for countries using other currencies domestically.
Brent crude futures were at $65.23 per barrel, down 44 cents, or 0.7 per cent, from their last close. Despite this, oil markets remain well supported due to supply restraint by the Petroleum Exporting Countries (Opec), which started last year in order to draw down excess global inventories.
Opec Secretary-General Mohammad Barkindo said the organisation registered 133 per cent compliance with agreed output reduction targets in January. Barkindo said compliance last year stood at 107 per cent.
Global oil demand for 2018 is estimated to grow 1.6 million barrels per day due to an “encouraging environment”, Barkindo added. — Reuters
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