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Oil Prices Rise Despite Supply Worries

Published 12/06/2018, 16:14
Updated 12/06/2018, 16:21
© Reuters.  Oil inched up on Tuesday.
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Investing.com - Oil prices were slightly higher on Tuesday despite an increase in production from OPEC.

Crude oil futures increased 0.51% to $66.44 a barrel as of 11:13 AM ET (15:13 GMT) after falling to a low of $64.92 earlier in the session. Meanwhile Brent crude futures, the benchmark for oil prices outside the U.S., rose 0.05% to $76.50.

Total production of the Organization of the Petroleum Exporting Countries and Russia countries rose by 35,000 barrels per day (bpd) in May to 31.87 million bpd, according to its monthly report.

However the higher production in Saudi Arabia, Algeria and Iraq was offset by decreased production in Venezuela, Libya and Nigeria, the firm said.

The organization remained cautious however, as there is “pronounced uncertainty” about the oil market outlook for the rest of the year.

“Recent developments in the oil market have led to pronounced uncertainty about the second half of the year,” OPEC wrote in its monthly report. “While oil demand in the US, China and India shows some upside potential, downside risks might limit this potential going forward..."

The organization set to meet in Vienna on June 22 and is expected to decide whether or not to increase supply by one million barrels per day, as OPEC faces losses from Venezuela and Iran.

OPEC has been cutting crude output by 1.8 million barrels per day (bpd) to prop up oil prices. The pact began in January 2017 and is set to expire at the end of 2018.

In other energy trading, Gasoline RBOB Futures increased 0.05% at $2.1055 a gallon, while heating oil rose 0.60% to $2.1737 a gallon. Natural gas futures was down 0.81% to $2.925 per million British thermal units.

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