Corrected: Oil up 1 percent as market focuses on supply risks

By Stephanie Kelly NEW YORK (Reuters) - (This version of the story in 2nd paragraph, corrects prices for Brent settlement to rose 54 cents, or 0.76 percent, to settle at $71.72 a barrel; not rose 56 cents, or 0.8 percent, to $71.74 a barrel) Oil prices rose 1 percent on Tuesday, as fighting in Libya and falling Venezuelan and Iranian exports raised concerns over tightening global supply, but uncertainty surrounding an OPEC-led production cut limited gains. Brent crude futures rose 54 cents, or 0.76 percent, to settle at $71.72 a barrel. U.S.

Reuters April 17, 2019 02:05:29 IST
Corrected: Oil up 1 percent as market focuses on supply risks

Corrected Oil up 1 percent as market focuses on supply risks

By Stephanie Kelly

NEW YORK (Reuters) - (This version of the story in 2nd paragraph, corrects prices for Brent settlement to rose 54 cents, or 0.76 percent, to settle at $71.72 a barrel; not rose 56 cents, or 0.8 percent, to $71.74 a barrel)

Oil prices rose 1 percent on Tuesday, as fighting in Libya and falling Venezuelan and Iranian exports raised concerns over tightening global supply, but uncertainty surrounding an OPEC-led production cut limited gains.

Brent crude futures rose 54 cents, or 0.76 percent, to settle at $71.72 a barrel. U.S. West Texas Intermediate (WTI) crude futures gained 65 cents, or 1 percent, to settle at $64.05 a barrel.

In Libya, fighting between Khalifa Haftar's Libyan National Army and the internationally recognized government has raised the prospect of lower supplies from the OPEC member.

U.S. sanctions on two other members, Iran and Venezuela, are already cutting shipments. Iran's crude oil exports have dropped in April to their lowest daily level this year, tanker data showed and industry sources said.

"Global supply is falling faster than people think. The market is imbalanced," said Phil Flynn, an analyst at Price Futures Group in Chicago. "The continuing loss of Venezuelan oil is going to take its toll. The OPEC cuts are going to take their toll."

Adding downward pressure, however, were concerns about Russia's willingness to stick with OPEC-led supply cuts and expectations of higher U.S. inventories.

Oil prices have gained this year more than 30 percent, helped by the deal between the Organisation of the Petroleum Exporting Countries and other producers including Russia. The group has been cutting output since Jan. 1 and will decide in June whether to continue the arrangement.

Gazprom Neft, the oil arm of Russian gas giant Gazprom, expects the global oil deal between OPEC and its allies to end in the first half of the year, a company official said on Tuesday.

Russia and the producer group may decide to boost output to fight for market share with the United States, TASS news agency сited Finance Minister Anton Siluanov as saying on Saturday.

"There is a growing concern that Russia will not agree on extending production cuts and we could see them officially abandon it in the coming months," said Edward Moya, senior market analyst at OANDA.

Also weighing on prices, U.S. crude inventories are expected to have risen by 1.7 million barrels last week, the fourth straight weekly increase. However, gasoline stockpiles were forecast to have fallen for nine straight weeks with refining rates at below 90 percent of total capacity since early February due to seasonal maintenance. [EIA/S]

The first of this week's stockpile reports is due at 4:30 p.m. EDT (2030 GMT) from the American Petroleum Institute, followed by government data on Wednesday.

(Reporting by Stephanie Kelly; additional reporting by Alex Lawler in London; Editing by Marguerita Choy and Richard Chang)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Oil rises 2% as OPEC complies with production cuts
Business

Oil rises 2% as OPEC complies with production cuts

By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000
Business

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000

By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen
World

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen

By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son