Brent oil moves above US$70 on OPEC cuts and US sanctions
Brent crude futures rose 3 US cents above the previous session’s close to reach US$70.14 per barrel at around 10.30am Singapore time on Tuesday.
Brent crude oil prices rose above US$70 per barrel on Tuesday, supported by supply cuts from the Organization of the Petroleum Exporting Countries (OPEC) and United States (US) sanctions on Iran and Venezuela.
Brent crude futures rose 3 US cents above the previous session’s close to reach US$70.14 per barrel at around 10.30am Singapore time on Tuesday.
US West Texas Intermediate (WTI) were at US$59.21 per barrel, 1% or 58 US cents higher than the previous close on Friday. On Monday, most US markets were closed due to a Federal Holiday.
OPEC supply cuts, US sanctions on Iran
The OPEC supply cuts has been propping up prices since the start of this year, with oil prices rallying around 40% year-to-date.
This month, Saudi energy minister Khalid al-Falih said that OPEC and its supporting countries have reached an agreement to reduce oil supplies at a slow pace, to provide stability in the oil market.
Oil inventories in developed countries rose by 3.3 million barrels month-on-month in March and 22.8 million above their five-year average, OPEC data showed.
On June 25 and 26, OPEC and its allies including Russia are scheduled to meet to discuss the forward plans of their oil output policy.
Washington on Friday said it would deploy more troops to the Middle East, further raising tensions in the regions. Even so, the impact on the tensions between US and Iran may be limited to the oil market, suggests experts.
The US has also imposed sanctions on Venezuela’s oil exports, as it attempts to topple the government ruled by president Nicolas Maduro.
Amid the US sanctions and OPEC cuts, the oil prices are still capped by global growth concerns and the US-China trade tensions, which are expected to curb fuel consumption.
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
React to volatility on commodity markets
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
