Oil prices jumped with demand; OPEC supply cuts

Oil prices rose on Tuesday on a combination of a strong demand and supply cuts by the producer group OPEC. The financial markets also supported crude futures due to their increased today. However, analysts are still warned of risks to the global economy.

  • US Crude oil futures were at $56.97 per barrel up 18 cents, or 0.3 percent, from their last settlement.
  • Brent crude futures were $66.75 per barrel, up 17 cents, or 0.3 percent.

Oil prices said that will be still supported by OPEC supply cuts and strong demand for marine diesel from the International Maritime Organization, despite economic headwinds this year. Brent prices averaging $70 per barrel this year and expect WTI to lag, averaging $59 per barrel in 2019, said Bank of America Merrill Lynch.

Traders also pointed to the political and economic crisis in OPEC-member Venezuela as a driver for oil prices.

Venezuela’s opposition-run congress on Monday declared a “state of alarm” over a five-day power blackout that has crippled the country’s oil exports and left millions of citizens scrambling to find food and water.

 

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