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TOKYO (Reuters) – Oil prices rose on Tuesday after forecasts of a tighter gasoline market and warnings to speculators from the Saudi energy minister who raised expectations of further production cuts from OPEC+.
Brent crude futures rose 85 cents (1.1%) to settle at $76.84 a barrel, while US West Texas Intermediate (WTI) crude futures rose 86 cents (1.2%) to settle at $72.91 a barrel. was done.
Prices rose 1% on Monday on optimism from higher US gasoline futures.
Gasoline futures rose 1.2% on Tuesday, with analysts expecting inventories to fall for a third straight week ahead of the peak summer travel season, which begins on May 29, the Memorial Day holiday. are doing.
The US Inventory Report from the American Petroleum Institute will be released at 4:30 pm EDT (2030 Japan time). The US Energy Information Administration reported official data on Wednesday.
Production cuts by some OPEC+ countries will go into effect this month.Concerns over supply tightness surfaced Minister of Energy of Saudi Arabia He said he would continue to “hurt” short sellers, those who bet on falling prices, and told them to “be careful.”
OANDA analyst Craig Earlham said the comments could mean that the Organization of the Petroleum Exporting Countries and allies, including Russia, will consider further cuts at a meeting on June 4.
Earlam added that Brent crude oil prices would need to rise above $77.50 a barrel to signal a change in sentiment.
“Of course, actions speak louder than words, and despite the group announcing two massive cuts last year that briefly shook the market, traders were unduly flinching at his words. There was no,” Earlam said.
There was also a view that the upside of crude oil prices was limited due to the US debt ceiling issue.another round debt ceiling negotiations The deadline for increasing risk of default unless the government raises its $31.4 trillion borrowing limit is looming, ending on Tuesday with no signs of progress.
“(Oil) prices are in a wide trading range year-to-date as the economy continues to slow, while strategic oil reserves and OPEC replenishment keep prices in line with global demand,” said Rob Howarth, senior investment strategist. They are likely to stay inside,” he said. At US Bank Wealth Management.
Reporter: Yuka Obayashi Editing: Christian Schmolinger
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