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Oil prices rise amid risk of supply disruptions

Reuters  |  SINGAPORE 

By Gloystein

(Reuters) - prices rose on Tuesday amid worries there could be a high risk of disruptions to supply, especially in the

Brent futures were at $71.69 per barrel at 0326 GMT, up 27 cents, or 0.4 percent, from their last close.

U.S. Intermediate (WTI) crude futures were up 32 cents, or 0.5 percent, at $66.54 a barrel.

Traders said markets were receiving general support due to a sense that there were high risks of supply disruptions, including a potentially spreading conflict in the Middle East, renewed U.S. sanctions against and falling output as a result of political and economic crisis in

"With so many potential supply disruptors in play and few signs that the current market upheaval will end any time soon, traders continue to pay the geopolitical risk premium," said Stephen Innes, at in

"prices should remain bid ... at least through the nuclear deal deadline (May 12) if not for the remainder of 2018," he added.

markets have generally been well supported this year, with Brent up by around 16 percent from its 2018-low in February, due to healthy demand which comes as the cartel of the Organization of the Petroleum Exporting Countries (OPEC) leads supply cuts aimed at tightening the market and propping up prices.

U.S. OUTPUT SOARS

Beyond OPEC's production restraint and concerns about supply disruptions, the main in has been the United States, where crude production has soared by almost a quarter since mid-2016 to 10.53 million barrels per day (bpd), largely thanks to a booming shale industry.

Only pumps out more currently at almost 11 million bpd.

"U.S. shale producers have been quietly capitalising on prices with increasing rig counts seen. A staggering amount of 73 rotary rigs have been placed since January 2018," said of in a note on Tuesday.

"As such, we expect a softening in prices as markets adjust from a bullish streak," he added.

The (API) is due to publish weekly U.S. fuel inventory data later on Tuesday while official government data, including on production, is due from the (EIA) on Wednesday.

(Reporting by Gloystein; Editing by and Kenneth Maxwell)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 09:40 IST
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