Equityworld Futures – Crude oil prices higher on Tuesday (07/02) in the Asian session, with the pull of sentiment OPEC production cuts – non OPEC is stronger to face increasing US production.
US crude oil futures price of West Texas Intermediate (WTI) rose 11 cents, or 0.21 percent, to $ 53.12 per barrel.
Brent crude futures, the international benchmark for oil prices, trading at $ 55.85 per barrel, at 0245 GMT, up 13 cents, or 0.23 percent from the last closing.
Since the beginning of this year, the benchmark crude oil futures remain within the range of $ 5 per barrel, showing a lack of indicators mover strong price.
Traders said that the key price support came from the efforts by the Organization of Petroleum Exporting Countries (OPEC) and other manufacturers to cut production by nearly 1.8 million barrels per day (bpd) in the first half of 2017.
While OPEC and Russia have jointly cut at least 1.1 million barrels per day so far, the increase in production in other places as well as signs of slowing growth in demand threatens to undermine these efforts, traders said.
Total oil refinery in the US is now at its highest level in 14 months, after rising more than 20 percent since OPEC production cut agreement reached.
There is also concern that US gasoline consumption, the main pillar for crude demand melembat.
Gasoline inventories rose by nearly 21 million barrels during the first 27 days of 2017, compared with an average increase of less than 12 million barrels at the same time of year during the previous decade, according to official inventory data, implying a decline in demand or ongoing oversupply.
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