Mubasher: Oil prices increased on Tuesday on positive news about the historic summit between US President Donald Trump and North Korean leader Kim Jong Un at the Capella Hotel on Sentosa island in Singapore, June 12.

US Nymex was $66.42 per barrel (pb), up 0.5% from its last close, while international benchmark Brent traded at $76.72 pb, 0.3% higher from last settlement.

President Trump stated that the closely watched meeting with his North Korean counterpart was “really very positive,” after signing a document after the talks.

Moreover, oil prices were generally buttressed by strong demand and production cuts led by the Organization of Petroleum Exporting Countries (OPEC) and its non-OPEC allies.

Nevertheless, the deluge of crude output from Russia, the US, and Saudi Arabia weighed on the rising prices. While Russian production reportedly jumped to 11.1 million barrels per day (bpd) in early June from 11 million bpd, the US crude output rose by nearly a third in the last two years, hitting a record high of 10.8 million bpd.

As for Saudi Arabia, the world's largest oil producer, told OPEC that it ramped up production to 10 million bpd in May from 9.9 million bpd in the preceding month.

“This fits with the theory that the Saudis and Russians are subtly moving toward a change to the agreement at this month’s meeting,” futures brokerage AxiTrader’s chief market strategist Greg McKenna told Reuters.

Meanwhile, other producers have also increased output. Kazakhstan’s crude production surged year-on-year 6.4% to 1.83 million bpd in the first five months of the year, the country’s deputy energy minister Makhambet Dosmukhambetov said on Tuesday.

By 7:33 am GMT, Nymex crudes rose 0.51% to $66.44 pb, while Brent crude futures went up 0.38% to $76.75 pb.