Oil prices climb

Oil prices climb

Oil prices rose on Tuesday, supported by growing confidence in the market that producers will come good on commitments to cut crude supply while demand picks up with more cars back on the road as coronavirus lockdowns eased around the world.

WTI crude futures gained 3.4%, or $1.12, to $34.37 a barrel as of 0652 GMT, just off an intra-day high of $34.54.

Brent crude futures were up nearly 1.7%, or 61 cents to $36.14, adding to a 1.1% gain on Monday in thin holiday trading, Reuters reported.

The market was buoyed by comments from Russia reporting its oil output had nearly dropped to its target of 8.5 million bpd for May and June under its supply cut deal with the OPEC and other leading producers, a grouping known as OPEC+.

OPEC+ countries are set to meet again in early June to discuss maintaining their supply cuts to shore up prices, which are still down around 45% since the start of the year. The big producers agreed in April to cut output by nearly 10 million bpd for May and June.

Meanwhile data from energy services firm Baker Hughes showed the United States’ rig count hitting a record low of 318 in the week to May 22, also indicating lower output in the future.