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Oil edges up, but bulls remain wary ahead of OPEC meeting

Reuters  |  LONDON 

By Cooper

LONDON (Reuters) - rose for a second day on Tuesday and volatility subsided to its lowest in three weeks, as investors prepared for a key meeting of the OPEC group next week.

Crude remained in a tight trading range, in line with the broader financial markets, which were largely unruffled by a U.S.-summit aimed at denuclearisation of the

Brent crude futures were up 17 cents at $76.63 a barrel by 0855 GMT, while U.S. Intermediate crude futures rose 11 cents to $66.21.

"The market has been rangebound for two weeks and that is likely to remain the case," Ole Hansen, at Saxo Bank, said.

The Organization of the Petroleum Exporting Countries, together with partners including Russia, has cut by 1.8 million barrels per day (bpd) since January 2017 in an effort to boost the market.

Volatility in has subsided due to caution around the group's meetings scheduled for June 22/23, at which it will decide on future supply policy.

With U.S. sanctions threatening to cut Iranian exports and the potential for more declines in Venezuelan production, OPEC kingpin and have indicated they would be willing to raise output to make up for any supply shortfall.

Russian production reportedly climbed to 11.1 million bpd in early June.

In the United States, output has risen by almost a third in the last two years, to a record 10.8 million bpd.

Top exporter - which has so far led OPEC's efforts to withhold supplies - is also showing signs of raising production.

In physical oil markets, light crude grades are set to trade at discounts against their respective official selling prices amid ample supplies to Asia, including from the United States, four trade sources said.

has told OPEC that the country increased to a little more than 10 million bpd in May, from 9.9 million bpd in April.

"This fits with the theory that the Saudis and Russians are subtly moving toward a change to the agreement at this month's meeting," said Greg McKenna, at

(Additional reporting by in SINGAPORE; Editing by Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, June 12 2018. 14:54 IST
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