economy Since 2017-04-19 at 16:02 (Baghdad time)
Baghdad - Mawazine News
Oil prices rose on Wednesday after the Organization of the Petroleum Exporting Countries (OPEC) said it was committed to curbing supply oversupply in the world crude markets, but increased oil production in the United States and global stocks still high are still wary of falling prices.
London Brent crude <LCOc1> was up 27 cents at $ 55.16 a barrel by 1106 GMT, while US WTI crude futures were up 20 cents at $ 52.61 a barrel.
Oil fell in the previous two sessions but was supported by comments by OPEC Secretary General Mohamed Barkindo, in which he said the organization was committed to restoring stability to the market by cutting world stocks to an average of five years.
But analysts cautioned that prices could fall rapidly.
OPEC and independent producers such as Russia agreed to cut output by 1.8 million barrels per day (bpd) in the first half of this year to reduce the glut of global fuel supplies that have been pushing the markets for nearly three years.
Geopolitical concerns have also fueled oil prices.
This week, US President Donald Trump issued an order to determine whether the lifting of sanctions on Iran serves American interests. The lifting of certain sanctions on Iran by the end of 2015 as part of a nuclear deal for Tehran to double the recent exports of crude throughout 2016.
But stockpiles and rocky oil production in the United States raise doubts about the adequacy of production cuts. Data from the US Petroleum Institute showed on Tuesday that despite oil inventories falling by 840,000 barrels in the week ending April 14, they are still near record highs.