Oil prices edges up to $65 as Opec rebuffs Donald Trump pressure

Brent oil edged up to $65 a barrel on Tuesday as Saudi Arabia and the rest of The Organization of the Petroleum Exporting Countries (Opec) were expected to stick to their production cuts, despite renewed pressure from US President Donald Trump.
 
Prices slid on Monday, when many traders were out of the office attending IP Week, a series of industry events in London, after Trump called on Opec to ease its efforts to boost the oil market. Prices were “getting too high”, the president said.
 
“Yesterday was a typical price action you see during IP Week, when you have a headline,” said Olivier Jakob, oil analyst at Petromatrix. “But, I don't think it will change anything in the current OPEC supply policy.”

 

Brent crude, the global benchmark, rose 24 cents to $65.00 by 5:09 pm (IST) after losing 3.5 per cent on Monday.
 
West Texas Intermediate crude eased 7 cents to $55.41.
 
Expectations that US crude inventories had risen for a sixth straight week limited the rally.
 
US crude stocks were seen 3.6 million barrels higher in weekly inventory reports, underlining that supply is adequate in the world’s top consumer. The first such report is due on Wednesday from the American Petroleum Institute.
 
Oil is up about 20 per cent since the start of the year, when the Opec and other producers, such as Russia, began cutting production in an effort to reduce a global glut.

 
Saudi Arabia and other Opec members are likely to be cautious about relaxing their supply-cut plan, Jakob said, after a boost in output in the second half of last year ahead of US sanctions on Iran led to a steep slide in prices.
 
Oil broker PVM took a similar view.
 
“Will the kingdom budge and increase production, or at least keep it steady,” said PVM’s Tamas Varga. “Just two weeks after announcing deeper cuts, it would be a capitulation.” An Opec source, in comments to Reuters on Tuesday, agreed with the analysts’ views. US sanctions against Opec members Iran and Venezuela have also contributed to the gains and are providing a floor for prices, analysts say.