Oil prices have increased towards $65 a barrel as OPEC supply cuts and Middle East tensions outweighed trade disputes between the US and China.
Benchmark Brent crude increased 59 cents to $64.70 a barrel, while US West Texas Intermediate crude was up 46 cents to $58.12, Reuters reported.
Last week, OPEC and its partners agreed to extend their supply-cutting agreement until March 2020. Brent has increased nearly 20% in 2019 supported by the deal and also tensions caused by Iran’s nuclear programme.
PVM analyst Tamas Varga was quoted by Reuters as saying, “OPEC and its allies are doing their best to support the market.
“Oil prices are to hold up reasonably well during coming months or at least they are not to fall out of bed.”
Oil also gained support from reports anticipated to show a decrease in US crude inventories. US crude stockpiles are predicted to fall 3.6 million barrels in a fourth consecutive weekly decline.
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Industry sources told Reuters that Russian oil output dropped close to a three-year low in early July 2019, dragged down by decreasing output from Rosneft and the discovery of contaminated Urals crude that affected the Druzhba pipeline to Europe.
The trade war between the US and China has dampened prospects for global economic growth and oil demand, while supply and security concerns supported the market. The world’s two largest oil consumers are relaunching trade negotiations this week.