Mubasher: Oil prices remained stable on Tuesday as extended output cut deal supported by the Organization of the Petroleum Exporting Countries (OPEC) and imminent US sanctions against Iran tightened the market.

Brent crudes stood at $78.58 per barrel (pb) earlier on Tuesday, $0.14 higher than their last close when their prices moved close to a three-and-a-half year high of $78.53 pb, while US Nymex futures reached $71.09, inching up by $0.13 from their last session.

On Monday, OPEC reported that oil inventories in the Organisation for Economic Co-operation and Development (OECD) developed countries fell to 9 million barrels in March above the five-year average and lower than the above average amount of 340 million barrels in January 2017.

On the other hand, spot oil deliveries are seeing their steepest discounts compared to the future prices in years, owing to weaker demand from China, and a backlog of shipments in Europe.

“Over the next few weeks, we should start to see markets globally clean up, but if that doesn’t happen, I think we could be in trouble,” a US crude trader at a global commodity merchant told Reuters, predicting a higher demand after global refinery maintenance ends and refineries resume production.

By 7:32 am GMT, Nymex oil crude shed 0.8% to $70.90 pb, while Brent crude inched down 0.03% to $78.21.