Oil prices rose on Tuesday on clear signs that producers are sticking to commitments to cut crude supply as more cars get back on the road with coronavirus lockdowns easing around the world.
U.S. West Texas Intermediate (WTI) crude CLc1 futures gained 2.3%, or 75 cents, to $34.00 as of 0057 GMT. There was no WTI settlement on Monday because of the U.S. Memorial Day holiday.
Brent crude LCOc1 futures inched up 0.7%, or 23 cents to $35.76, adding to a 1.1% gain on Monday in thin holiday trading.
The market was buoyed by comments from Russia reporting its oil output had nearly dropped to its target of 8.5 million barrels per day (bpd) for May and June under its supply cut deal with the Organization of the Petroleum Exporting Countries (OPEC) and other leading producers, a grouping known as OPEC+.
“There’s definitely a feeling those cuts have come through as well as you could expect,” said Daniel Hynes, senior commodity strategist at Australia and New Zealand Banking Group.