Oil rises with financial markets, longer supply cuts expected

Oil prices rose on Tuesday in line with firmer financial markets and bolstered by expectations that producer group OPEC and its allies will keep withholding supply.

Front-month Brent crude futures were at $62.56 at 0707 GMT, up 27 cents, or 0.4 per cent, from Monday’s close. US West Texas Intermediate (WTI) crude futures were at $53.75 per barrel, 49 cents, or 0.9 per cent, above their last settlement.

Prices fell by around 1 per cent in the previous session and crude futures are down by some 20 per cent from their 2019 peaks in late April, dragged lower by a widespread economic downturn that has started to impact oil consumption.

Traders said crude oil futures on Tuesday were pushed up by a broader lift in financial markets after Beijing eased financing rules to stem an economic downturn.