Oil prices drop by over 1%-Analyst

Analyst on Tuesday said, oil prices retreated losing more than one per cent before paring losses in the afternoon on Tuesday, which were higher earlier this week on the back of geopolitical risks.

Analyst added that, US crude dropped 0.81 per cent to $62.77 per barrel, while global benchmark Brent dropped back below $70, declining 0.90 per cent to $68.29 per barrel.

Daily Times gathered that, geopolitical tensions remain centre stage with markets clearly in wait and see mode and the potential for this to spiral into a cycle of retaliation remains, while markets will likely remain cautious.

U.S. markets rose on Monday, recovering from losses earlier on Friday, with gains led by big tech stocks.

Organization of Petroleum Exporting Countries (OPEC) output declined last month as several Persian Gulf producers stepped up their implementation of cutbacks aimed at balancing global oil markets.

Saudi Arabia, Iraq and the United Arab Emirates reduced production in December, the final the month of a round of restrictions by the cartel before it presses on with new and even deeper curbs this year.

Output from the OPEC fell by 90,000 barrels a day to 29.55 million in December, according to a Bloomberg survey of officials, ship-tracking data and estimates from consultants including Rystad Energy AS and JBC Energy GmbH.

The campaign by OPEC and its allies to tighten supplies shored up global crude markets in 2019, pushing Brent prices up 23 per cent despite a flood of new American shale oil and fragile fuel demand around the world.

The coalition agreed early last month to deepen its curbs to prevent a new surplus forming in the first quarter.

The survey showed that Saudi Arabia, OPEC’s biggest member, is already making strides toward its new target with 9.83 million barrels a day of production, the kingdom has cut more than twice the amount pledged under last year’s deal, and is well on its way to the new, self-imposed quota of 9.7 million barrels.