Oil edges up as OPEC ignores Trump pushback on prices
NEW YORK — Oil futures rose slightly on Tuesday after news that the Organization of the Petroleum Exporting Countries (OPEC) planned to continue production cuts despite comments from US President Donald Trump, who criticized the producer group for rising crude prices a day earlier.
NEW YORK — Oil futures rose slightly on Tuesday after news that the Organization of the Petroleum Exporting Countries (OPEC) planned to continue production cuts despite comments from US President Donald Trump, who criticized the producer group for rising crude prices a day earlier.
Prices fell more than 3.5% on Monday, their biggest daily percentage drop this year, after Mr. Trump said he wanted OPEC to ease its efforts to boost oil prices.
An OPEC source told Reuters on Tuesday OPEC would stick to its agreement and push for more adherence from its members and producer allies to tighten crude supplies regardless of Mr. Trump’s recent tweet.
The OPEC source said the cartel, along with non-member producers, would continue its supply-cut agreement to balance the market until they see inventories fall to their five-year average. “There is no doubt we will continue with our reduction as planned,” the OPEC source said.
Brent crude futures, the global benchmark, rose 45 cents to settle at $65.21 a barrel. US West Texas Intermediate (WTI) crude futures were up 2 cents to settle at $55.50 a barrel.
Prices extended gains in post-settlement trade after the industry group American Petroleum Institute (API) reported US crude inventories fell more than expected last week.
Crude stocks dropped by 4.2 million barrels in the week ending Feb. 22 to 444.3 million, API data showed. Analysts expected a 2.8 million barrel build. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 2 million barrels.
“After yesterday’s pullback, the market is trying to stabilize again,” said Gene McGillian, vicepresident of market research at Tradition Energy in Stamford, Connecticut. “We’re basically turning our focus back to expectations of the producer output cuts and also the sanctions on Venezuela continuing to tighten supplies.”
Oil prices have risen about 20% since the start of the year largely on an agreement by OPEC and non-member producers, including Russia, to reduce production. Supplies from Venezuela have been curtailed since US sanctions were imposed to try to oust President Nicolas Maduro.
OPEC+ agreed in December to cut supply by 1.2 million barrels per day from Jan. 1 for six months. —