Oil prices climb as faith in supply cuts grows
LONDON: Oil prices rose on Tuesday, supported by growing confidence that producers are following through on commitments to cut crude supplies while fuel demand picks up with more cars back on the road as coronavirus lockdowns ease.
Brent crude futures were up nearly 1.4%, or 50 cents to $36.03 a barrel as of 0840 GMT.
U.S. West Texas Intermediate (WTI) crude futures was up 2.6%, or 86 cents, at $34.11 a barrel. There was no WTI settlement on Monday because of the U.S. Memorial Day holiday.
The market was buoyed by comments from Russia that its oil output had dropped almost to its target of 8.5 million barrels per day (bpd) for May and June under the supply cut deal agreed by major producers (OPEC+).
OPEC+ countries are set to meet again in early June to discuss maintaining their supply cuts to shore up prices, which are still down about 45% since the start of the year.
The world’s major producers, including Saudi Arabia and Russia, agreed in April to cut their collective output by nearly 10 million bpd for May and June. – Reuters