Oil Rise As Production Cut Tightens Market
Oil prices rose on Tuesday on the back of an outlook for healthy demand amid ongoing production cuts led by OPEC and Russia.
U.S. West Texas Intermediate (WTI) crude futures were at 58.50 dollars a barrel.
The Organisation of Petroleum Exporting Countries (OPEC), the Middle East-dominated producer club, and Russia, the world’s single biggest oil producer, have been withholding output to tighten the market and prop up prices.
The agreement to cut started last January and is set to cover all of 2018.
Jabar al-Luaibi, oil minister of OPEC-member Iraq, said there would be a balance between supply and demand by the first quarter of 2018, leading to a boost in prices.
The production cuts came amid healthy global demand which many analysts expect to hit 100 million barrels per day (bpd) for the first time at some point next year or in 2019.