Oil Prices Rise in the U.S Right at the Beginning of the Summer Driving Season when Demand is High
On Tuesday, there was a rise in the U.S. oil prices even though there was an increased output from the Middle East countries that supplies to the Asian countries mostly.
In the U.S, it is the beginning of the summer driving season which marks the peak demand. Crude oil futures,
U.S. West Texas Intermediate was trading at $49.50 a barrel, an increase of 17 cents compared to the last session.
Another benchmark, the Brent crude futures were trading at $49.65 per barrel which was 11 cents lower competed to the last close.
Sources who have knowledge of the matter said that Iraq will be supplying five million more barrels of crude to its partners in the coming month.
An OPEC meeting is scheduled to be held this week but it is unlikely that any decision on capping productions will be taken.
Iraq a member of OPEC (Organization of Petroleum Exporting Countries) which is the second-largest producer of crude in the group said earlier it is aiming for record export volumes from its southern terminals in June amounting to 3.47 million barrels a day.
The race for gaining higher market share is still on with Saudi Arabia, Iran, Kuwait as well as the U.A.E planning to increase supplies to Asia in the next quarter.