Oil prices up 4% on supply cuts, improving demand – ZAWYA

Oil prices up 4% on supply cuts, improving demand – ZAWYA

Oil prices up 4% on supply cuts, improving demand. LONDON- Oil prices rose on Tuesday, with Brent crude rising above $40 a barrel, as the IEA increased its oil demand forecast for 2020 and as record supply cuts supported.. Oil supplies in May, the IEA said, plunged by nearly 12 million bpd, with the Organization of the Petroleum Exporting Countries and its allies including Russia - a grouping known as OPEC+ - reducing their output by 9.4 million bpd.. The means OPEC+ hit 89% compliance with their agreed cuts in May, the IEA said.. Elsewhere U.S. shale producers are also cutting back on drilling amid the collapse in demand for oil..