Oil prices rise after OPEC cuts, U.S. sanctions on Iran, Venezuela

A pump jack stands at dusk in the Permian Basin area in Texas U.S. Bloomberg  Angus Mordant

A pump jack stands at dusk in the Permian Basin area in Texas U.S. Bloomberg Angus Mordant

Prices also continue to be supported by the on-going OPEC-led supply cuts and the US sanctions against Iran and Venezuela, which have helped tighten global supplies.

In fact, the sources had also revealed that the OPEC might even raise output from the beginning of third quarter of 2019, if Venezuelan and Iranian crude supply fall further and the crude oil prices keep surging. U.S. West Texas Intermediate (WTI) crude futures ended the session up 31 cents, or 0.5 percent, at $63.89 a barrel.

U.S. West Texas Intermediate crude at Midland yesterday traded at the biggest discount to futures in nearly four months after Phillips 66 closed a unit for maintenance at its Borger, Texas refinery, adding to a backlog of barrels as production climbs. Additionally, U.S. crude output remained at a record 12.2 million barrels per day.

"We see Brent and WTI prices averaging $75 per barrel and $67 per barrel respectively through the rest of this year, but risk is asymmetrically skewed to the upside", RBC Capital Markets said in a research note.

On the demand side, most of the world's growth in fuel consumption is coming from Asia.

Bombing by a warplane occurred on Friday near the Mellitah oil and gas plant, jointly operated by Italy's ENI and Libyan state oil firm NOC, a Libyan National Army (LNA) military source and residents said.

OPEC and its allies led by Russian Federation are due to meet in Vienna on June 25-26 to set their policy.

US oil giant Chevron Corporation said on Friday it will buy Anadarko Petroleum Corporation in a stock and cash transaction valued at 33 billion USA dollars to bolster its position in shale and the liquid natural gas market.

Oil prices have recovered sharply since December, when they fell to a 15-month low, and ICE Brent has been trading a five-month high of above $71 per barrel this week.

Oil prices at $70 per barrel and higher increase the risk of slowing demand growth against the backdrop of uncertainties in global economy, International Energy Agency said in its Oil Market Report. The IEA also said that USA sanctions and power outages pushed OPEC...

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