Investing.com – Oil prices rebounded from the prior day’s losses on Tuesday, as market players took a more bullish view of OPEC’s ability to withstanding U.S. President Donald Trump’s jawboning.
Crude had fallen sharply Monday after Trump warned OPEC not to cut supply to the global market, saying the world economy was too ‘fragile’ to withstand higher prices.
“Trump has never been shy about voicing his opinions on oil prices, but this particular tweet came at a time when the market was quite overextended to the upside, having enjoyed a very good run since late last year,” said Craig Erlam, senior market analyst with Oanda.
After falling by over 3% at one stage, prices have recovered, helped by a string of more bullish speeches from industry executives at the International Petroleum Week conference in London.
Traders are now looking ahead to the weekly report that is due for release at 4:30PM ET (21:30 GMT).
The U.S. ‘s weekly report will be released on Wednesday.
U.S. futures for April delivery on the New York Mercantile Exchange tacked on 17 cents, or around 0.3%, to $55.65 a barrel by 8:40AM ET (13:40 GMT). WTI had fallen to a one-week low of $55.02 in overnight trade.
Elsewhere, for May delivery on the ICE (NYSE:) Futures Exchange in London rose 38 cents, or about 0.6%, to $65.28 a barrel.
Oil prices have rallied approximately 22% to start the year, boosted by efforts by global producers to cut supply.
In December, OPEC and a group of 10 producers outside the cartel, led by Russia, agreed to collectively cut production by a total of 1.2 million barrels per day (bpd) during the first six months of 2019.
Top exporter and OPEC’s de-facto leader Saudi Arabia recently pledged to cut even more production than the deal called for.
In addition to that, Venezuela and Iran are struggling to produce as much as allowed under the deal, due to U.S. sanctions, while civil war continues to depress Libyan output.
In other energy trading, added 0.8% to $1.717 a gallon, while rose 0.8% to $1.991 a gallon.
advanced 0.9% to $2.841 per million British thermal units.
— Reuters contributed to this report
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