Oil at five-month high as markets tighten
Opec-led supply cuts, US sanctions against Iran and Venezuelaand violence in Libya provide support
Singapore — Oil prices rose to fresh five-month highs on Tuesday as markets tightened amid Opec-led supply cuts, US sanctions against Iran and Venezuela, and escalating violence in Libya. International benchmark Brent futures hit their strongest level since last November at $71.34 a barrel, before easing to $71.18 a barrel by 4.52am GMT, still 8c, or 0.1%, above their last close. US West Texas Intermediate (WTI) crude oil futures also hit a November 2018 high, at $64.77 a barrel, before easing to $64.53, up 13c, or 0.2%. Oil markets have tightened this year as the US imposed sanctions on oil exporters Iran and Venezuela while producer club Opec has been withholding supply to prop up prices. Brent and WTI futures have risen by 40% and 30% respectively since the start of 2019. Goldman Sachs said an oil supply deficit had opened up early this year. “We expect the drivers of this deficit to persist through 2Q19” due to a “shock and awe implementation of the Opec cuts ... further tight...
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