Crude oil rose sharply Tuesday as Opec+ supply cuts and expectations of lower U.S. inventories outweighed concern about weaker demand due to a potential worldwide economic slowdown.
Brent crude was up 70 cents at $67.89 a barrel, not far from its 2019 high of $68.69/Bbl hit on March 21, Kallanish Energy reports.
U.S. West Texas Intermediate crude rose by $1, or 1.9%, to settle at $59.94/Bbl. WTI traded above $60/Bbl earlier in the day.
Expectations of a further drop in U.S. inventories also supported prices, suggesting the Opec+ pullback was helping to avert an oil glut. Opec+ is comprised of most Opec members and a number of non-Opec producer-nations, led by Russia.
Further price support came from another power blackout in Venezuela, the second to hit the Opec member this month, raising concern about the country’s oil exports.
Worries about demand have limited oil’s rally as manufacturing data from Asia, Europe and the U.S. pointed to an economic slowdown.
This post appeared first on Kallanish Energy News.