Oil edges up on Opec’s supply cuts and US sanctions
Concerns about the global economy in general, however, and US factory data weighs on the market
London — Oil prices edged up on Tuesday, buoyed by expectations of tightening global supply due to US sanctions on Venezuela and production cuts led by oil cartel Opec. However, disappointing US factory data weighed on the market, which on Monday saw US West Texas Intermediate (WTI) and Brent crude reach 2019 highs, as concern about the global economy persisted. WTI futures were at $54.65 a barrel at 8.10am GMT, up 9c or 0.16%. They touched their highest level in more than two months at $55.75 the previous day. International Brent crude futures were at $62.56 a barrel, up 5c or 0.08%. Analysts said US sanctions on Venezuela had focused market attention on tighter global supplies. “Fresh US sanctions on the country could see 0.5% to 1% of global supply curtailed,” said Vivek Dhar, mining and energy analyst at Commonwealth Bank of Australia. The sanctions will sharply limit oil transactions between Venezuela and other countries and are similar to but slightly less extensive than those...
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