Crude oil prices moved higher on Tuesday amid expectations the OPEC-led productions cuts will be extended well beyond the previously agreed period.
A Genscape report on Monday showing a drop in crude stockpiles at Cushing, Oklahoma also buoyed prices ahead of the American Petroleum Institute’s inventory report due out later in the day.
The Energy Information Administration is scheduled to release its weekly crude inventory data on Wednesday.
A section of traders are worried that growing tensions between the U.S. and China over the Hong Issue, and the likely consequences may result in a drop in energy demand.
West Texas Intermediate Crude oil futures for July ended up $1.37 or nearly 4% at $36.81 a barrel, the highest close since early March.
Brent crude futures for August rose $1.25 or about 3.3% to 39.57 a barrel.
The 23-nation OPEC+ group is set to meet online on June 4. It is widely expected that the cartel will extend output cuts through July or August.
Earlier, they had agreed to cut total oil output by 9.7 million barrels per day in May – June.
They had agreed in April to cut their total oil output by 9.7 million barrels per day (bpd) from May 1 through June 30.
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