Oil prices jumped more than 1% on Tuesday as the Joint Ministerial Monitoring Committee reported than compliance in the pact between OPEC and its allies to cut production topped 150%.
New York-traded West Texas Intermediate crude futures gained 75 cents, or 1.4%, to $54.39 a barrel by 7:35 AM ET (11:35 GMT), while Brent crude futures, the benchmark for oil prices outside the U.S., rose 66 cents, or 1.1%, to $58.78.
Overall conformity jumped to 159% in July from the prior 137% and the average compliance of 134% since January was at its highest level so far this year.
The committee said that the pact between OPEC and allies led by Russia was supporting oil market stability and predicted that with “ongoing healthy oil demand” that has arrested growth in global oil inventories, the situation should lead to “significant draws” in the second half of 2019.
Source : Investing.com