Oil prices rise as Opec output cuts drain stocks
Reduction in supply by Opec is being offset by an increase in US production as prices rise
London — Oil prices rose on Tuesday on evidence that the global market is tightening as lower production by Opecand other exporters drains stocks, though increased drilling in the United States could keep a lid on prices. Benchmark Brent crude was up 40 cents at $55.63 a barrel by 2.40pm GMT, while US light crude was 40 cents higher at $53.15. Ministers from the Organization of the Petroleum Exporting Countries (Opec) and big producers outside the group said on Sunday that of the almost 1.8-million barrels per day (bpd) they had agreed to remove from the market starting on January 1, 1.5-million bpd had already been cut. Ministers have been engaged in a campaign of "bullish rhetoric", talking up their deal to make sure the market responds positively, said Tamas Varga, senior analyst at London brokerage PVM Oil Associates. "Call it a charm offensive or determination to succeed," Varga said. "One thing is certain: the level and the depth of co-operation between Opec and non-Opec produ...
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