Oil gains 1% on Saudi Arabia and Opec cuts
Analysts say markets are tightening because of voluntary production cuts led by Opec and allies including Russia, as well as US sanctions on Iran and Venezuela
London — Oil prices gained about 1% on Tuesday, supported by Opec-led production cuts and US sanctions against Iran and Venezuela, though they remain wary of surging US output and the outcome of US-China trade talks. Brent crude futures were up 61 US cents at $62.12 a barrel and US West Texas Intermediate (WTI) crude oil futures rose 54c to $52.95 a barrel by 9.50am GMT. The continuing closure of parts of the Keystone pipeline that brings Canadian oil into the US also helped to prop up WTI, traders said, after a partial shutdown at a Phillips 66 crude distillation unit led to initial sell-offs on Monday. Analysts said markets were tightening because of voluntary production cuts led by Opec and allies including Russia, as well as US sanctions on Opec members Venezuela and Iran. Saudi Arabia, the world’s top exporter and de facto leader of Opec, said on Tuesday that it would reduce oil production to nearly 9.8-million barrels per day (bpd) in March, about 500,000 bpd more than it orig...
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