SINGAPORE: Oil prices were mixed on Tuesday as supply cuts, led by producer club Opec, and US sanctions on fuel exports from Iran and Venezuela supported crude, while concerns about an economic slowdown weighed on the market.
Front-month Brent crude futures, the international benchmark for oil prices, were at $69.99 at 06:37 GMT, down 12 cents, or 0.2 per cent, from the last session’s close, when they rose 2.1 per cent.
US West Texas Intermediate (WTI) crude futures were at $59.03 per barrel, up 40 cents, or 0.7 per cent, from their last close on Friday. WTI did not trade on Monday due to a US public holiday.
Prices have been supported by supply cuts led by the Organization of the Petroleum Exporting Countries (Opec) since the start of the year, and by political tensions in the Middle East.
Opec and some allies including Russia are due to meet on June 25 and 26 to discuss output policy.
Beyond the output cuts, US bank, Citi said, “Geopolitical turmoil across the Middle East ... are likely to encourage financial investors to realign with their bullish physical counterparties.” In physical oil markets, Middle East crude premiums hit their highest levels in years earlier this month amid falling supply.
Beyond the Opec cuts, US sanctions on petroleum exports from Iran and Venezuela have tightened markets.
“Iran exports remain under pressure as US sanctions bite. This comes as Opec appears to be heading towards extending the current production cut agreement,” Citi added. — Reuters
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