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Oil rises above $70 a barrel for first time since November

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Oil has rallied amid a growing consensus that a deal to cut output by the Organisation of the Petroleum Exporting Countries and partners (OPEC+) will probably be extended.

Sunday 07, April 2019

(Bloomberg) --Oil rose above $70 a barrel in London for the first time since November amid signs global inventories are tightening and expectations of new sanctions on Iranian crude.

Brent crude futures, the international benchmark, climbed one per cent. The Trump administration faces a key decision later this month on whether to tighten restrictions on Iran’s 1.3 million barrels a day of exports. OPEC shipments are seen falling further through late April, according to Oil Movements, and tensions in OPEC member Libya escalated as strongman Khalifa Haftar’s forces edged closer to the capital Tripoli.

Unplanned supply losses from Iran and Venezuela are also increasingly tightening the market. But Brent had stalled just below $70 this week as clouds linger over the global economy and a new flood of shale-oil pours in from the US

The US Energy Department said that American crude inventories expanded by a surprise 7.24 million barrels last week, as domestic production climbed to a record. Still, the data also showed tighter supplies of refined products, as distillate stockpiles fell faster than normal for the time of year and gasoline contracted for a seventh week.

Other oil-market news Gasoline futures was little changed at $1.9514 a gallon. French oil giant Total is tying up with China’s Tianneng Group to build batteries, moving into mass production of electricity storage technology.

TAGS : OPEC, Brent , Tianneng Group , Total

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