Oil Is Nearing Its Highest Level In Five Months

Oil prices held steady near a five-month high on Tuesday amid expectations that supplies will be reduced for threatened reasons.

Led by violence in Libya, OPEC-led output cuts and US sanctions against Iran and Venezuela. OPEC-led production cuts are expected to remain in place at least in June after the oil cartel and its allies canceled a planned meeting in April.

Oil prices are also gaining momentum from US sanctions against Iran and Venezuela, exporters of oil, as well as new concerns about a possible drop in supply in Libya following the escalation of violence. Where a warplane yesterday attacked Tripoli's only airport, which operates as the eastern forces in the Libyan capital ignored international calls for a truce.

The US Petroleum Institute (API), an industrial group, will release its offer report later today.

Crude contracts denominated in yuan

On the other hand, China's yuan-denominated futures prices have stabilized after Russia hinted that production could begin in June, coinciding with US sanctions limiting supply to Venezuela and Iran. And closed Tuesday at the Shanghai Mercantile Exchange.

Crude futures for May delivery rose 0.3 yuan to close at 478.2 yuan a barrel ($ 71.22).

For his part, the head of the Russian sovereign wealth fund, "Keryl Dimitreev," that the agreement to reduce supplies may become unmet after June, and expected producers to start increasing their production by this month.

Goldman Sachs raised its forecast for Brent crude in the second quarter to $ 72.5 a barrel from $ 65 and noted that the future of the oil market would look like the past, especially the 1990s.

Oil futures

• Brent crude was little changed at $ 71.09 a barrel, after hitting $ 71.34 a barrel, the highest level since November.
• US crude futures rose 0.2 per cent to $ 64.53 a barrel.