With Brent pulling back from an early gain on profit-taking, oil prices were mixed on Tuesday. The US crude’s rally extended amid signs that producers are cutting production as promised.
Brent crude fell 19 cents (0.6 percent) to $34.62 a barrel by 0351 GMT. Previously, it touched its highest level since April 9. Up 11 cents (0.4 percent), the US West Texas Intermediate crude was at $31.93 a barrel. Earlier in the session, it rose as high as $33.44, hitting its highest since March 16.
Signs that output cuts agreed by OPEC+ being implemented on the ground boosted the oil market. Oil exports have been cut sharply by OPEC+ in the first half of May. This implies a strong beginning in complying with a new production cut pact.
As there is a significant risk of repeat outbreaks and lockdowns and some restrictions remain in place, Eurasia Group said demand will recover only slowly.
