Oil rose above $74 a barrel as OPEC’s production remained steady last month despite a boost by Saudi Arabia, while traders weigh the impact of potential global trade restrictions on economic growth.
Futures in New York climbed as much as 1.2 percent to touch its highest intraday level since 2014. While Saudi Arabia raised crude output by the most in five years last month, disruptions in Libya coupled with ongoing supply losses in Venezuela meant the kingdom’s boost was only enough to steadyOPEC production. Meanwhile, the premium for near-term U.S. oil increased to the highest since 2014 versus longer dated contracts as analysts forecast shrinking supplies across America.
West Texas Intermediate crude for August delivery traded at 74.56 a barrel on the New York Mercantile Exchange at 11:29 a.m. in Singapore after rising as much as 88 cents to $74.82 a barrel, the highest intraday level since November 2014. Prices declined 21 cents to $73.94 on Monday. Total volume traded was in line with the 100-day average.
Brent for September settlement traded 0.6 percent higher at $77.78 a barrel. The contract on Monday dropped $1.93 to close at $77.30 a barrel on the London-based ICE Futures Europe exchange. The global benchmark traded at a $5.56 premium to WTI for September.
Source : Bloomberg