Crude oil futures rose for a fourth consecutive session on Tuesday, 27th June 2017 as investors covered short positions, though worries over a festering supply glut kept a lid on prices. U.S. West Texas Intermediate (WTI) crude futures were up 12 cents, or 0.3 percent, at $43.50 per barrel by 0323 GMT. Brent crude futures gained 14 cents, or 0.3 percent, to $45.97 per barrel. The market is up slightly so far this week after dropping for the past five weeks.
The Organization of the Petroleum Exporting Countries (OPEC) and its partners have been trying to reduce a global crude glut with production cuts. OPEC states and 11 other exporters agreed in May to extend cuts of 1.8 million barrels per day (bpd) until March.
However, Nigeria and Libya, OPEC members exempt from the cuts, have raised output. Iran was allowed a small increase to recover market share lost under Western sanctions over its nuclear programme. It said its production has surpassed 3.8 million bpd and is expected to reach 4 million bpd by March.
And U.S. shale oil output has risen around 10 percent since last year, with the number of U.S. oil rigs in operation at the highest in more than three years.
A fuel glut in China, a hangover from demonetisation in India, and an ageing, declining population in Japan are holding back crude oil demand growth in three of the world’s top four oil buyers.