Oil rose towards $68 a barrel on Tuesday as OPEC supply cuts and expectations of lower U.S. inventories outweighed concern about weaker demand due to an economic slowdown. The price of global benchmark Brent crude has risen about 25 percent in 2019, supported by supply curbs by the Organization of the Petroleum Exporting Countries plus allies, and involuntary losses due to U.S. sanctions on Iran and Venezuela. "It appears that concerns about demand have taken something of a back seat," Commerzbank analyst Carsten Fritsch said. "Instead, market participants are focusing on the tight supply situation again." Click Read More below for additional detail.
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On the New York Mercantile Exchange, crude oil for July delivery tacked on 70 cents, or 1.2%, to trade at $58.73 a barrel during European morning hours. A day earlier, New York-traded oil futures fell to $57.71, the lowest level since April 29, before ending down $1.69, or 2.83%, at $58.03, as a broadly stronger U.S. dollar and concerns that U.S. shale production could rebound in the months ahead weighed.
Oil retreated below $47 in New York after OPEC officials failed Monday to work out a compromise on a deal to cut production and boost crude prices. Futures lost as much as 2.3 percent. West Texas Intermediate for January delivery lost as much as $1.06 to $46.02 a barrel on New York Mercantile Exchange and was at $46.09 at 12:15 p.m. in London. Prices Monday rose $1.02 to $47.08 a barrel. Brent for January settlement, which expires Wednesday, lost as much as $1.07, or 2.2 percent, to $47.17 a barrel on the London-based ICE Futures Europe exchange. The contract advanced 2.1 percent to $48.24 a barrel Monday. The global benchmark traded at a $1.23 premium to WTI for the same month. The more-active February futures were down 64 cents at $48.57 a barrel. click Read More below for additional detail