Commodity Tips, Oil near three-year high of $69.8/bbl on output cuts by OPEC
Oil hovered near a three-year high of $70 a barrel on Monday on signs that production cuts by OPEC and Russia are tightening supplies, but analysts warned of “red flags” due to surging US production.
International benchmark Brent crude futures were trading 3 cents lower at $69.84 by 1522 GMT, having risen above $70 earlier in the session.
US West Texas Intermediate (WTI) crude futures were up 22 cents at $64.52 a barrel. Trading was relatively slow due to a national holiday in the United States.
A production-cutting pact between the Organization of the Petroleum Exporting Countries, Russia, and other producers has given a strong tailwind to oil prices, with both benchmarks last week hitting levels not seen since December 2014.