Oil rises to $68 as supply cuts outweigh economic worry

Oil rose to around $68 a barrel on Tuesday as OPEC supply cuts and expectations of lower U.S. inventories outweighed concern about weaker demand due to an economic slowdown.The price of global benchmark Brent crude has risen by more than 25 percent in 2019, supported by supply curbs by the Organization of the Petroleum Exporting Countries plus allies, and losses due to U.S. sanctions on Iran and Venezuela.Brent was up 92 cents at $68.13 a barrel at 1334 GMT, not far from its 2019 high of $68.69 reached on March 21. U.S. crude added $1.28 to $60.10.“It appears that concerns about demand have taken something of a back seat,” Commerzbank analyst Carsten Fritsch said.

“Instead, market participants are focusing on the tight supply situation again.”Expectations of a further drop in U.S. inventories also supported prices, suggesting the OPEC-led curbs were helping to avert a buildup of excess supplies.The first of this week’s supply reports, from the American Petroleum Institute, is due at 2030 GMT. U.S. crude inventories are forecast to have fallen by 2.4 million barrels in what would be a third straight weekly decline