Wed, 15 Jul 2020

Oil prices rise amid output cuts

Xinhua
27 May 2020, 06:51 GMT+10

NEW YORK, May 26 (Xinhua) -- Oil prices climbed on Tuesday, fueled by supply cut efforts by major oil producers.

The West Texas Intermediate (WTI) for July delivery increased 1.10 U.S. dollars to settle at 34.35 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery rose 0.64 dollar to close at 36.17 dollars a barrel on the London ICE Futures Exchange.

The moves followed a solid week on the energy markets that saw WTI crude finish 12.6 percent higher. Global benchmark Brent rose 8.1 percent last week. U.S. markets were closed Monday in observance of Memorial Day.

The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, agreed to cut output by 9.7 million barrels per day for May and June, aiming to tackle a global supply glut on the back of the COVID-19 crisis.

Oilfield services company Baker Hughes said Friday that the number of active U.S. rigs drilling for oil dropped by 21 to 237, marking a 10th straight weekly decline in a row.

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