Oil prices extend rises Tuesday on market rebalancing

Oil prices extend rises Tuesday on market rebalancing

Mubasher: Oil prices continued to rise on Tuesday, backed by overall optimism on the market rebalancing after global stocks resumed gains and following the report released by the Organization of Petroleum Exporting Countries (OPEC).

By 8:41 am GMT, Brent crude grew 0.37% to $62.82 per barrel (pb), while West Texas Intermediate (WTI) crude (Nymex) added 0.30% to $59.47 pb.

In the meantime, the US dollar index dropped 0.42% to 89.831.

The US Dow Jones index jumped 410 points at close on Monday, bolstering overall market confidence.

On the same day, OPEC reported a drop in its oil production in January by 8,100 barrels to 32.30 million barrels per day (bpd) from a month earlier. The drop was due lower production from countries led by Venezuela, and followed by Nigeria and Angola.

Moreover, OPEC raised its expectations for oil supply growth from non-OPEC members due to the rising output from the US output in 2018.

The oil organisation projected that production by non-members will grow by around 1.40 million bpd to 59.26 million bpd, of which the US will have 1.30 million bpd.