Oil nears $53 on tighter U.S mar­ket

Daily Trust - - NEWS -

Oil prices hit a two-month high on Mon­day lifted by a tight­en­ing US crude mar­ket and the threat of sanc­tions against OPEC-mem­ber Venezuela.

Brent crude fu­tures were 52.90 dol­lars per bar­rel earlier in the day, their high­est since May 25. U.S. West Texas In­ter­me­di­ate (WTI) fu­tures were up 16 cents or 0.3per cent at 49.87 dol­lars per bar­rel.

The en­tire WTI curve is close to mov­ing back over 50 dol­lars per bar­rel, with only Septem­ber and Oc­to­ber a notch be­low that level.

The price rise put both crude bench­marks on track for a sixth con­sec­u­tive ses­sion of gains.

Prices have risen around 10 per cent since the last meet­ing of lead­ing mem­bers by the Or­ga­ni­za­tion of the Petroleum Ex­port­ing Coun­tries (OPEC) and other ma­jor pro­duc­ers, in­clud­ing Rus­sia.

At that in­stance, the group dis­cussed po­ten­tial mea­sures to fur­ther tighten oil mar­kets.

“U.S in­ven­to­ries are show­ing mas­sive draw­down, Saudi Ara­bia seems in­tent on play­ing its role as the world’s swing pro­ducer.

“Im­pend­ing sanc­tions on Venezuela by the U.S will al­most cer­tainly be oil price­sup­port­ive,” said Jef­frey Hal­ley, an­a­lyst at fu­tures bro­ker­age, OANDA.

(Reuters/NAN)

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