Global oil prices slipped marginally but continued to trade just below their 2019 highs with the support of supply cuts by key crude oil producers.
Brent crude oil futures fell six cents to $67.48 per barrel, while US West Texas Intermediate (WTI) futures were down four cents from their last close to settle at $59.05 a barrel, reported Reuters.
Since January 2019, the Organization of the Petroleum Exporting Countries (OPEC) member nations along with other producers restricted oil supplies to the global market to check the sharp drop in prices.
The oil cartel and other participants of the deal, known as OPEC+, were scheduled to meet next month to discuss future plan on supplies. However OPEC cancelled the meeting, which extends the supply cuts to at least June 2019.
Besides OPEC+ initiatives, oil prices were supported by US sanctions against oil producers Iran and Venezuela.
OANDA senior market analyst Alfonso Esparza was quoted by Reuters as saying: “The OPEC+ deal has brought stability to crude prices and signs of an extension have taken crude higher.
“The ball is now on the US production side with the weekly crude inventories an upcoming indicator to be taken into consideration when it’s released on Wednesday.”
Since early 2018, crude oil production in the US jumped by more than 2 million barrels per day (Mbpd) to around 12 Mbpd.
Concerns of economic slowdown and introduction of alternative transport fuels are anticipated to drag the oil market.