U.S. crude oil futures gained nearly 1% Tuesday after flooding throughout the Midwest constricted crude flow from the storage hub in Cushing, Oklahoma, Kallanish Energy learns.
U.S. West Texas Intermediate futures settled at $59.14 a barrel, up 51 cents, or 0.9%, from its close on Friday before the long Memorial Day holiday weekend.
Flooded areas of Arkansas and Oklahoma were waiting for more rain that will feed the already swollen Arkansas River, forecasters said Tuesday, Reuters reported.
Up to 19 inches of rain have fallen so far in parts of Oklahoma over the month of May, the National Weather Service said, with more on the way.
Brent crude futures were three cents lower, at $70.08/Bbl. The global benchmark repeatedly moved above and below the $70/Bbl mark in choppy trading, as prices were caught between fears of slowing economic growth and expectations members of Opec+ will extend their six-month deal to curb production by 1.2 million barrels per day.
The Opec+ members, which include most members of Opec, along with a number of other producers led by Russia, are due to meet June 25-26, to discuss output policy, but it remains unclear whether their production pact will be extended.
Brent futures last week fell 4.5%, and WTI dropped 6.4%, its biggest weekly loss since December, Reuters reported.
Last week’s oil-price drop came after the government reported U.S. crude oil inventories have risen to 476.8 million barrels — the highest total since July 2017.
Weekly inventory data this week has been delayed a day due to Monday’s Memorial Day holiday in the U.S..
Globally, supplies have tightened because of the OPEC+ cuts, with political tensions in the Middle East adding to the upward pressure on prices. U.S. sanctions have also largely taken Iranian and Venezuelan crude out of global markets.
Investors remained concerned the escalating trade war between the U.S. and China could hit the global economy and dent fuel consumption.
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