Mumbai, 14 May (Commoditiescontrol): Crude oil prices saw a slight increase on Tuesday due to a combination of supply disruptions, rising demand, and ongoing output cuts. U.S. West Texas Intermediate (WTI) crude futures climbed 18 cents to $79.30 a barrel, while Brent crude futures rose 19 cents to $83.55 a barrel.
Market analysts are closely monitoring wildfires in western Canada, which pose a potential threat to the country's oil supply. Although no immediate disruptions have been reported, the fires are occurring near Alberta's crucial oil sands region, which has a production capacity of 3.3 million barrels per day. According to Alex Hodes, an analyst at StoneX, there is a high likelihood of impact on production.
The uptick in oil prices also follows a 1% increase in the previous session, fueled by stronger demand indicators from the U.S. and China. The American Automobile Association (AAA) anticipates this year's Labour Day weekend traffic to be the busiest since 2000. Additionally, recent data from China indicates that consumer prices have risen for the third consecutive month, suggesting a recovery in demand.
Adding to the bullish sentiment, Iraq’s oil minister, Hayyan Abdul Ghani, reaffirmed the country's commitment to voluntary output cuts agreed upon by OPEC+ members. This commitment comes after a brief reversal over the weekend when Ghani hinted that Iraq might not continue with new reductions. The next OPEC+ meeting is scheduled for June 1, where members are expected to discuss further strategies.
Investors and market participants continue to watch these developments closely as they could significantly influence global oil market dynamics.
(By Commoditiescontrol Bureau: 09820130172)
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