Plan to keep Opec cuts in place boost oil
Consensus among producers to drive down crude inventories ‘gently’ drove up prices, with Middle East tensions adding to the bullish sentiment
London — Oil hit multi-week highs on Monday after Opec indicated it was likely to maintain production cuts that have helped boost prices this year, while escalating Middle East tensions provided further support. Brent crude was up by 34c to $72.55 a barrel by 9.28am GMT, having earlier touched $73.40, the highest since April 26. US West Texas Intermediate crude was up 24c at $63 a barrel, after hitting a three-week high of $63.81. Saudi energy minister Khalid al-Falih said on Sunday there was consensus among Opec and allied oil producers to drive down crude inventories “gently” but he would remain responsive to the needs of a “fragile market”. United Arab Emirates energy minister Suhail al-Mazrouei earlier told reporters that producers were capable of filling any market gap and that relaxing supply cuts was not the right decision. Opec data indicates oil inventories in the developed world rose by 3.3-million barrels month-on-month in March, and were 22.8-million barrels above their ...
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