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Brent crude nears $70 as oil prices rise for fourth day on Opec supply cuts

Oil production from Russia, which has joined Opec in agreeing to supply cuts to prop up prices, fell to 11.3 bpd

Reuters  |  Tokyo 

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Supply from the Organization of the Petroleum Exporting countries hit a four-year low in March

prices rose for a fourth day on Wednesday, with support from Opec-led supply cuts and US sanctions overshadowing an industry report showing an unexpected rise in US inventories last week.

Brent futures rose 35 cents, or 0.5 per cent, to $69.72 a barrel by 0207 GMT, after earlier reaching $69.87, the highest since Nov. 12 and within touching distance of $70.

US Intermediate crude rose 22 cents, or 0.4 per cent, to $62.80 cents a barrel, earlier rising to $62.90, the highest since Nov. 7.

"The production cuts by Opec plus are providing a nice backdrop here for higher prices and until we see U.S. production reassert itself, the easier move is higher for oil," said Edward Moya, at

Supply from the countries hit a four-year low in March, a survey found earlier this week.

production from Russia, which has joined Opec in agreeing to supply cuts to prop up prices, fell to 11.3 million barrels per day (bpd) last month, but missed the country's target under the deal.

Three of eight countries granted waivers by to import from have cut the imports to zero, a said on Tuesday, adding that improved global would help reduce Iranian crude exports further.

said on Tuesday the would continue to pressure Venezuela's and those who support it with economic sanctions, citing world as low enough to allow for the measures.

Venezuela's state-run company, PDVSA, kept near 1 million barrels per day in March despite US sanctions and power outages that crippled its main export terminal, according to documents and Refinitiv Eikon data, reported later in the day.

US crude stocks rose unexpectedly last week, while gasoline and distillate inventories drew, industry group the said late on Tuesday.

Official numbers from the US Department of (DoE) are due out later on Wednesday.

"As long as we don't see a major build with the DoE crude oil inventories, we could see a clean move higher," Moya said.

(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: Wed, April 03 2019. 11:15 IST