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Oil prices rise on rising Middle East tension, ongoing OPEC supply cut

Published 05/21/2019, 08:41 AM
Updated 05/21/2019, 08:50 AM
Oil prices rise on rising Middle East tension, ongoing OPEC supply cut
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* Trump threatens Iran with "great force"
* OPEC expected to continue supply cuts into H2 2019

By Henning Gloystein
SINGAPORE, May 21 (Reuters) - Oil prices edged up on Tuesday
on signs that producer club OPEC will continue withholding
supply this year and as tensions between the United States and
Iran escalated.
Brent crude futures LCOc1 , the international benchmark for
oil prices, were at $72.07 per barrel at 0033 GMT, up 10 cents,
or 0.1 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were
up by 14 cents, or 0.2 percent, at $63.24 per barrel.
"Oil prices opened higher, after OPEC held onto its
production cut deal," said ANZ on Tuesday.
The Organization of the Petroleum Exporting Countries
(OPEC), Russia and other non-member producers have been
withholding production since the start of the year to prop up
the market.
A meeting has been scheduled for June 25-26 to discuss the
policy, but the cartel is now considering moving the event to
July 3-4, according to OPEC sources on Monday, with its de-facto
leader Saudi Arabia signalling a willingness to continue
withholding output. Meanwhile, U.S. President Donald Trump on Monday threatened
Iran with "great force" if it attacked U.S. interests in the
Middle East. This came after a rocket attack in Iraq's capital
Baghdad, which Washington suspects to have been organized by
militia with ties to Iran. ANZ bank said the rising tension in the Middle East meant a
"risk premium is reflected in the price" of crude oil.

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