2020-05-26 10:24:39

Shafaq News / Oil prices climbed on Tuesday, supported by mounting confidence in the market that producers will stick to their pledges to cut crude supplies while demand improves with more cars back on the roads amid easing anti-Corona virus measures around the world.

U.S. West Texas Intermediate (WTI) crude futures gained 3.4%, or $ 1.12, to $ 34.37 a barrel, slightly lower than today's high of $ 34.54.

Brent crude futures were up nearly 1.7%, or 59 cents to $36.12, adding to a 1.1% gain on Monday in thin holiday trading.

The market was buoyed by comments from Russia reporting its oil output had nearly dropped to its target of 8.5 million barrels per day (bpd) for May and June under its supply cut deal with the Organization of the Petroleum Exporting Countries (OPEC) and other leading producers, a grouping known as OPEC+.

"There's definitely a feeling those cuts have come through as well as you could expect," said Daniel Hynes, senior commodity strategist at Australia and New Zealand Banking Group.

OPEC+ countries are set to meet again in early June to discuss maintaining their supply cuts to shore up prices, which are still down around 45% since the start of the year. The big producers agreed in April to cut output by nearly 10 million bpd for May and June.