Oil prices increasing early on Tuesday morning (June 2), beaming with the anticipation from traders whether major crude oil producers come to settle extending huge output cuts for backing up prices at an OPEC+ meeting scheduled on June 4.
Brent crude LCOc1 futures are seeing higher ground of 0.3%, rising $0.12/barrel to $38.44/barrel on 00:11 GMT. The United States crude oil futures West Texas Intermediate (WTI) CLc1 traded in $0.38 range in Monday and closed at 0.3% ($0.09) at $35.53/barrel. The prices of Brent are twice as high as one and a half months ago, supported by supply cuts from the Organization of the Petroleum Exporting Countries and the allies, or OPEC+. OPEC+ is considering extending further their production cut of 9.7 million barrels per day, or almost 10% of global output into July or August, at an online meeting scheduled later this week.
At the OPEC+ meeting agreement last April, the supply cut was appointed for May and June output, increasing the cut percentage from 7.7 million barrels/day agreement from last July through December. The cutback extending was mainly pushed by Saudi Arabia.
United States crude stockpiles located at Cushing, Oklahoma, are shrinking to 54.3 million barrels in the week to May 29. The narrowing stockpiles also plays the part in the prices hike, as market sources noted.
