Oil prices rise, heads to $53

 Oil prices rose on Tuesday, lifted by

indications that supply is gradually tightening, especially in the United

States.

Brent crude oil was up 40 cents at 52.06 dollars a barrel by 0715 GMT. United States

light crude was 35 cents higher at 47.72 dollars.

“US crude oil stocks have been falling consistently in recent weeks,”

said Fawad Razaqzada, market analyst at futures brokerage

Forex.com.

“If the downtrend in oil inventories is maintained, then a bullish case

can be made for oil, especially given the ongoing supply restrictions from

OPEC and Russia,” Razaqzada said .

US commercial crude inventories have fallen by almost 13 percent

from their March peaks, to 466.5 million barrels.

US crude production has broken through 9.5 million barrels per day

(bpd), its highest since July 2015, but analysts say growth may slow as

US energy firms cut the number of rigs drilling for new oil.

The Organisation of the Petroleum Exporting Countries and non-OPEC

producers including Russia have pledged to hold back around 1.8

million bpd of output between January this year and March 2018 in

order to tighten supplies and highten prices.

The weekly rollout of data on US inventories starts later on Tuesday,

giving the market a chance to see if the recent downward trend in U.S.

crude stocks is continuing. (NAN)

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