Oil prices rise

LONDON. — Oil prices rose to new 2019 highs yesterday, supported by supply cuts from OPEC and falling output from Iran and Venezuela due to US sanctions.

Brent crude oil futures were up 55 cents at $68,09 per barrel at 1145 GMT, having earlier risen to a new 2019 high of $68,16 a barrel, their highest since November 2018.

US West Texas Intermediate (WTI) futures were at $59,47 per barrel, up 38 cents from their last settlement. They have also risen to their highest since November 2019 of $59,57 a barrel.

The Organisation of the Petroleum Exporting Countries on Monday scrapped its planned meeting in April, effectively extending supply cuts that have been in place since January until its next regular meeting in June.

OPEC and a group of non-affiliated producers including Russia, known as OPEC+, cut supply in 2019 to halt a sharp price drop which began in the second-half of 2018 due to booming US production and fears of a global economic slowdown.

Saudi Arabia has signalled that OPEC and its allies may continue to restrain oil output until the end of 2019.

“The OPEC+ deal has brought stability to crude prices and signs of an extension have taken crude higher,” said Alfonso Esparza, senior market analyst at futures brokerage OANDA.

Prices have been further supported by US sanctions against oil exports from Iran and Venezuela, traders said. — Reuters.