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Oil steady ahead of Trump meeting with Kim

Reuters  |  SINGAPORE 

By Gloystein

(Reuters) - were little changed in early Asian trading on Tuesday as markets awaited the outcome of a summit between U.S. and North Korean leader Un in

Traders also said they were reluctant to take on large new positions ahead of a meeting between cartel OPEC and some of its allies on June 22.

Brent crude futures , the international benchmark for oil prices, were trading at $76.50 per barrel, up 4 cents from their last close at (0003 GMT).

U.S. Intermediate (WTI) crude futures were at $66.16 a barrel, up 6 cents from their last settlement.

Crude has been supported by healthy demand and voluntary production cuts led by the Organization of the Petroleum Exporting Countries (OPEC), but analysts said were also currently heavily driven by public policy events and statements.

Trump and Kim will hold a summit on Tuesday in Singapore, where both sides seek to narrow differences over how to end a nuclear standoff on the

The meeting is officially due to start at 0900 time (0100 GMT).

"A positive resolution from Singapore is bullish for stocks," said Greg McKenna, at AxiTrader, and several said crude futures could also get a lift from such an outcome.

In oil market fundamentals, however, not all things point to higher prices, with output from the three biggest producers, Russia, the and on the rise.

Russian production has reportedly risen from below 11 million barrels per day (bpd) to 11.1 million bpd in early June.

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

Now, top exporter - which has so far led OPEC's efforts to withhold supplies - is also showing signs of upping production.

has told OPEC that it raised 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 towards a change to the agreement at this month's meeting," McKenna said.

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 on June 22 at the cartel's headquarters in Vienna, Austria, to discuss policy.

"are likely to trade in a tight range ahead of next week's OPEC meeting," said on Tuesday.

(Reporting by Gloystein; editing by 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. 05:54 IST