Oil maintained gains from the previous session on Tuesday morning in Asia trading after the Organization of Petroleum Exporting Countries and allies including Russia (OPEC+) decided on a modest 100,000 barrel-a-day supply cut while adding that the group may do more in the fourth quarter if necessary.
Nuclear Deal: Gains made by crude oil on Monday were supported by a setback in Iranian nuclear talks, reported Bloomberg. The European Union’s ace diplomat, Josep Borrell, played down the possibility of a rapid revival of the deal, subduing the prospects for a swift return of Iranian supply, it said.
Price Action: West Texas Intermediate (WTI) futures were trading at $89.23/barrel on Tuesday, up from the lows of $86.82/barrel seen on Friday. Crude prices had fallen recently dragged by demand concerns over fears of a recession and aggressive central bank rate hikes to rein in inflation.
The United States Brent Oil Fund BNO closed 1.03% higher while the Vanguard Energy Index Fund ETF VDE traded over 2% higher.
OPEC statement: A statement released by OPEC read, “the meeting noted that higher volatility and increased uncertainties require the continuous assessment of market conditions and a readiness to make immediate adjustments to production in different forms if needed.”
“OPEC+ has the commitment, the flexibility, and the means within the existing mechanisms of the Declaration of Cooperation to deal with these challenges and provide guidance to the market.”
Image and article originally from www.benzinga.com. Read the original article here.