Oil rises on signs of a tightening market

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Brent inches higher on support from Opec-led supply cuts and US santions on Iran and Venezuela

While prices continue increasing there are concerns that an economic slowdown could slow fuel consumptionNatural gas flares are seen at an oil pump site outside Williston, North Dakota, the US. Picture: ReutersOil prices edged up on Friday, lifted by ongoing supply cuts led by the Organization of the Petroleum Exporting Countries and by US sanctions on petroleum exporters Iran and Venezuela.

US West Texas Intermediate crude futures were at $63.82 per barrel, up 24c, or 0.4%, from their previous settlement. Oil markets have been pushed up by more than a third this year by supply cuts led by Opec, US sanctions on oil exporters Iran and Venezuela, and an escalating conflict in Libya. Opec and its allies will meet in June to decide whether to continue withholding supply, and while Opec’s de-facto leader, Saudi Arabia, is seen to be keen to continue cutting, sources within the group said it may raise output from July if disruptions elsewhere continue.“China and India comprise nearly 55% of global demand growth. Throw in the rest of emerging Asia and the figure balloons to 80%,” said RBC Capital Markets.

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