Sanctions buoy oil, but growth concerns are likely to cap gains
Brent rises amid Opec-led cuts and US sanctions, but analysts expect surging US production and concerns over growth to keep markets in check
Singapore — Oil prices rose on Tuesday amid Opec-led supply cuts and US sanctions against Iran and Venezuela, although analysts expect surging US production and concerns over economic growth to keep markets in check. US West Texas Intermediate (WTI) crude oil futures were at $52.78 a barrel at 3.29am GMT, up 37c, or 0.7%, from their last close. The ongoing closure of parts of the Keystone pipeline that brings Canadian oil into the US also helped prop up WTI, traders said. International Brent crude futures were up 50c, or 0.8%, at $62.01 a barrel. Analysts said markets are tightening amid voluntary production cuts led by producer cartel Opec and because of US sanctions on Venezuela and Iran. But some said supply-side risks were not receiving enough focus. “We believe that oil is not pricing in supply-side risks lately as markets are currently focused on U.S.-China trade talks, ignoring the risks currently in place from the loss of Venezuelan barrels,” US bank JP Morgan said in a week...
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