Dubai – Masaader News
US crude futures gained almost 1% on Tuesday after flooding throughout the Midwest constrained crude flow from the main U.S. storage hub in Oklahoma, according to Reuters.
Brent crude futures settled flat at $70.11 a barrel, after repeatedly veering above and below the $70-mark.
Prices had been caught between fears of slowed economic growth and expectations that the Organization of the Petroleum Exporting Countries (OPEC) and its allies will extend their six-month deal to curb production.
OPEC and its allies including Russia, known as OPEC+, are due to meet over June 25-26 to discuss output policy, but it remains unclear whether their production pact will be extended.
“Saudi Arabia seems to be in favor” of extending production cuts as U.S. output rises, said Gene McGillian, vice president of market research at Tradition Energy.
“The market would have to adjust downwardly to adjust for the barrels” if OPEC ended its cut of 1.2 million barrels per day (bpd).