With OPEC likely to ignore Trump, oil prices edge up
By Laila Kearney NEW YORK (Reuters) - Oil futures inched up on Tuesday after news that OPEC would continue production cuts despite comments from U.S. President Donald Trump, who criticized the producer group for rising crude prices a day earlier.
By Laila Kearney
NEW YORK (Reuters) - Oil futures inched up on Tuesday after news that OPEC would continue production cuts despite comments from U.S. President Donald Trump, who criticized the producer group for rising crude prices a day earlier.
Prices fell more than 3.5 percent on Monday, their biggest daily percentage drop this year, after Trump said he wanted the Organization of the Petroleum Exporting Countries to ease its efforts to boost oil prices.
An OPEC source told Reuters on Tuesday OPEC would stick to its agreement and push for more adherence from its members and producer allies to tighten crude supplies regardless of Trump's recent tweet.
The OPEC source said the cartel, along with non-member producers, would continue its supply-cut agreement to balance the market until they see inventories fall to their five-year average. "There is no doubt we will continue with our reduction as planned," the OPEC source said.
Brent crude futures, the global benchmark, rose 45 cents to settle at $65.21 a barrel. U.S. West Texas Intermediate crude futures were up 2 cents to settle at $55.50 a barrel.
"After yesterday's pullback, the market is trying to stabilize again," said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut. "We're basically turning our focus back to expectations of the producer output cuts and also the sanctions on Venezuela continuing to tighten supplies," McGillian said.
Oil prices have risen about 20 percent since the start of the year largely on an agreement by OPEC and non-member producers, including Russia, to reduce production. Supplies from Venezuela have been curtailed since U.S. sanctions were imposed to try to oust President Nicolas Maduro.
OPEC+ agreed in December to cut supply by 1.2 million barrels per day from Jan. 1 for six months. Saudi Arabia, OPEC's top producer, recently estimated its supply would fall in March by a half-million more barrels a day than anticipated under the supply-reduction agreement.
Libya's internationally recognised government agreed with the state oil company to reopen the country's largest oilfield, El Sharara, according to a statement on Tuesday, weighing on prices.
Investors are also looking ahead to weekly figures on U.S. crude inventories. U.S. crude stocks are expected to rise by 3.6 million barrels in weekly inventory reports. The first such report is due at 4:30 p.m. EST (2130 GMT) from the American Petroleum Institute.
(Reporting by Laila Kearney; Additional reporting by Alex Lawler in London; Koustav Samanta in Singapore and Colin Packham in Sydney; Editing by Tom Brown and Lisa Shumaker)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.