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Brent Oil Up By More Than $70 led by OPEC Cuts And Economic Concerns

May 28, 2019 | Tuesday

Commodity

   

On Tuesday, benchmark Brent crude oil price bound more than $70 per barrel. That mostly supported by the supply cuts led by OPEC and the U.S. sanctions on Venezuela and Iran fuel exports outweighs the concerns regarding the economic slowdown.

The Brent crude futures, among the international benchmark for oil prices, were up amounting to $70.14 during 02:18 GMT, up by 3 cents higher compared to the last session's close as Brent increased 2.1 percent.

Meanwhile, the U.S. West Texas Intermediate (WTI) crude futures also up amounting to $59.21 per barrel, up by 58 cents or 1 percent compared to its previous close on Friday. The U.S. WTI didn't open trade on Monday due to a public holiday within the United States.

The changes in prices also pushed by the supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) since the start of the year 2019.

OPEC with a few of its allies including Russia is scheduled to meet on June 25 and 26. They will discuss matters on the output policy going forward.

On Tuesday, according to ANZ bank, the supply issues are coming back to "fore" crude oil prices that are strongly increasing.

Going beyond the OPEC cuts, the U.S. sanctions on Iran and Venezuela's petroleum exports also led the tightened markets.

According to ANZ, Iran's petroleum exports are under pressure while the U.S. sanctions tighten. All this came while OPEC moves towards a plan to extend its supply cut agreement.

Just last year, U.S. President Donald Trump withdrew the 2015 international nuclear deal with Iran. Washington is ratcheting up the sanctions and looking forward to ending Iran's international sales of crude oil to stifle its economy.

Moreover, Washington imposed sanctions on petroleum exports coming from Venezuela. That with a bid to overthrow its government under President Nicolas Maduro.

   

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