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Oil prices rise with global markets as Trump hails positive meeting with Kim

Reuters  |  SINGAPORE 

By Gloystein

(Reuters) - Oil prices rose alongside global markets on Tuesday as U.S. said a summit in with North Korea's had made "a lot of progress", boosting hopes of a deal to end a nuclear standoff on the

Brent crude futures were trading at $76.72 a barrel at 0640 GMT, up 26 cents, or 0.3 percent, from their last close.

U.S. Intermediate (WTI) crude futures were at $66.42 a barrel, up 32 cents, or 0.5 percent.

Global markets were lifted after Trump said the closely watched summit with Kim was "really very positive" after he and Kim signed a document following talks.

RISING OUTPUT LOOMS

Beyond the summit, crude has been generally supported by healthy demand and voluntary production cuts led by OPEC.

Some oil market fundamentals, however, point to lower prices, with output from the three biggest producers, Russia, the and on the rise.

Russian production has reportedly climbed from below 11 million barrels per day (bpd) 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 of 10.8 million bpd.

"The deluge of U.S. crude production continues to hold the top-side in check," said Stephen Innes, at

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 (OSPs) amid ample supplies to Asia, including from the United States, four trade sources said on Tuesday.

has told OPEC that it increased to a little more than 10 million bpd in May, up 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

Other producers are also increasing output. Kazakhstan's in the first five months of 2018 rose 6.4 percent from the same time a year ago to 37.7 million tonnes (1.83 million bpd), the said on Tuesday.

OPEC, together with some non-OPEC producers including Russia, started withholding output in 2017 to end a global supply overhang and prop up prices.

OPEC and its partners are due to meet at its headquarters in to discuss policy.

"Expect more of the same whippy markets driven by rumours and innuendo ahead of the June 22 OPEC meeting," Innes said.

(Reporting by Gloystein; Editing by and Richard Pullin)

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

First Published: Tue, June 12 2018. 12:25 IST
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