After the signs that OPEC and allied makers will bolster the efforts of promoting and merchandising, pushing US grain within a hairline of a key resistance level of $ 60 per barrel. Oil prices went up higher on Tuesday, reaching new levels of 2019.
New York-brokered unearned income rose 35 cents, or 0.59%, to $ 59.73 per barrel from 8:08 AM ET.
Meanwhile, Brent futures gross, benchmark for oil prices outside the US, traded 54 cents, or 0.80%, to $ 68.08.
This year, both barrels, benefiting from aggressive production cuts agreed by OPEC and other major oil-led allies led by Russia, which were implemented at the beginning of the year, have risen by about 30%.
Over the weekend Saudi Arabia, OPEC’s de facto leader and Russia made promises to boost compliance with the deal to cut oil production by 1.2m barrels a day in the first six months of this year.
“OPEC and its ally Russia have bet that their mantra of production cuts will continue to kick off higher oil prices and the market seems to be buying it – for the moment,” commented Investman.com’s analyst Baran Krishnan.
Many investors expect the West Texas Intermediate barrel to withstand $ 60 in the “next few days” as a first step towards reaching $ 80 dollars that Saudi economists and officials have labeled as the desired level to fund the kingdom budget and this was noticed by Krishnan.
This Friday, it is believed that traders will react to weekly data on US crude inventories. The US oil agency will issue its reserve report for the week ending March 15 at 16:30 ET, ahead of official government data scheduled for Wednesday. Consensus is seeking a decline of about 0.8m barrels.
Gasoline revenues in other energy trade rose 0.57% to $ 1.8935 in a gallon of 8:10 ET, while heating oil rose 1.09% to $ 1.9905 a gallon.
Finally, natural gas revenues traded up to 1.26% to $ 2,886 per million British thermal units./investing.com