Oil futures rose on Tuesday, with U.S. prices up by more than 2%, buoyed by a report showing strong compliance with OPEC production cuts and expectations for a sizable weekly decline in U.S. crude supplies.
The Organization of the Petroleum Exporting Countries' Joint Ministerial Monitoring Committee on Tuesday pegged July compliance with pledged output cuts at 159%, the highest monthly compliance rate so far this year. Meanwhile, a survey of analysts polled by S&P Global Platts shows expectations for a 4.7 million-barrel decline in last week's U.S. crude stocks, ahead of government supply data due Wednesday.
Prospects for a deal to lift U.S. sanctions on Iran, which would add more barrels of oil to the market, also faded Tuesday, contributing to oil's rise. October West Texas Intermediate oil rose $1.29, or 2.4%, to settle at $54.93 a barrel on the New York Mercantile Exchange.
Source : MarketWatch