Crude Oil Higher as Producers Cut Output and Demand Rises

Oil prices pushed higher Tuesday, amid signs producers are making good their promises to cut crude supply while demand picks up. At 9:15 AM ET (1315 GMT), U.S. crude futures traded 3.4% higher at $34.38 a barrel. The international benchmark Brent contract rose 1.9% to $36.22. Earlier Tuesday Russia reported its oil output had nearly dropped to its target of 8.5 million barrels per day for May and June under its deal with the Organization of the Petroleum Exporting Countries and other leading producers, known as OPEC+. The group is set to meet again in early June to discuss maintaining the supply cuts, having agreed in April to cut output by nearly 10 million bpd for May and June. Russia’s Energy Ministry met on Tuesday with domestic oil producers, ostensibly to coordinate production levels over the coming months.

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