Oil prices rose on Tuesday, pushed up by supply cuts led by producer club OPEC and U.S. sanctions against Iran and Venezuela, although concerns about a potential recession kept markets from rising further.
- Brent crude oil futures were at $67.48 per barrel, up 27 cents, or 0.4 percent, from their last close.
- U.S. West Texas Intermediate (WTI) futures were at $59.35 per barrel, up 53 cents, or 0.9 percent, from their last settlement.
Prices have also been driven up by U.S. sanctions on oil exporters and OPEC-members Iran and Venezuela.
Commodity trader Trafigura said on Monday it expects Brent to trade around $66-$67 a barrel, or slightly higher, for the rest of the year.
Analysts said that oil prices would likely be higher by now if it were not for a spreading economic slowdown that some say could turn into a recession soon and dent fuel consumption.
“Recession risks have risen to the highest since 2008,” said Ole Hansen, head of commodity strategy at Saxo Bank.
JPMorgan Chase Bank said that: “Global factory output growth slowed to a 1 percent rate last quarter, and indicators point to a near stall this quarter.”
The U.S. bank added: “Outside China, Asian industry was already contracting as we turned into the New Year.”
