Oil prices slipped early Monday but quickly recovered.
Brent crude oil rose for sixth day on Tuesday. The benchmark passed $75 a barrel. Traders expect that supplies will tighten because fuel is rising at the same time the United States may impose sanctions against Iran and #OPEC-led output cuts remain in place.
Brent crude oil futures LCOc1 climbed to as high as $75.20 a barrel in early trading on Tuesday. This was the highest since Nov. 27, 2014. Brent was still at $75 a barrel at 0311 GMT up 29 cents from its last close.
Brent’s six-day rising streak is the most since a similar string of gains in December. Furthermore, it is up by more than 20 percent from its 2018 low in February.
Meanwhile, U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $68.98 a barrel. This was a gain of 34 cents from their last settlement. On Thursday, WTI rose to as high as $69.56, the most since Nov. 28, 2014.
Markets have been lifted by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) which were introduced in 2017 with the aim of propping up the market.
OPEC cuts have benefited U.S. oil producers.
The U.S. has been flooding Europe with a record amount of crude.
#Russia joined with the Organization of the Petroleum Exporting Countries last year in cutting oil output jointly by 1.8 million barrels per day (bpd). They say that this has largely rebalanced the market. In addition, it has helped elevate benchmark Brent prices close to four-year highs.
Now, the relatively high prices brought about by that pact, coupled with surging U.S. output, are making it harder to sell Russian, Nigerian and other oil grades in Europe, traders said.
“U.S. oil is on offer everywhere.” “It puts local grades under a lot of pressure.”