Oil halted declines to trade above $66 a barrel on optimism OPEC may extend its agreement to cut oil output and as analysts forecast a decline in U.S. crude stockpiles.
Futures in New York climbed 0.6 percent after posting the biggest loss in more than a week on Monday. The Organization of Petroleum Exporting Countries and allied producers will consider extending their output curbs into 2019, Kuwait Oil Minister Bakheet Al-Rashidi said. Meanwhile, analysts surveyed by Bloomberg forecast U.S. crude inventories fell last week after a surprise increase the previous week.
Oil surged to a three-year high last week after geopolitical risks such as the conflict in Syria and tensions between Saudi Arabia and Iran-backed rebels in Yemen raised concerns over potential supply disruptions. Record U.S. crude production remains a major concern for OPEC and its allies who have been battling to reduce a global inventory glut via supply reductions for the last 15 months.
West Texas Intermediate for May delivery climbed as much as 40 cents to $66.62 a barrel on the New York Mercantile Exchange, and traded at $66.59 at 9:33 a.m. in Tokyo. The contract fell $1.17 to close at $66.22 on Monday. Total volume traded was about 65 percent below the 100-day average.
Brent for June settlement added 35 cents to $71.77 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude traded at a $5.20 premium to June WTI.
Source : Bloomberg