Oil is up on tighter supplies largely due to Opec supply cuts

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Oil is up on tighter supplies largely due to Opec supply cuts
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Opec and its allies have been supporting oil prices all year, but a ramped up US-China trade war could dent oil demand

London — Oil prices rose on Tuesday, supported by tighter global supplies that helped offset lingering worries that demand could be hurt by a US-Chinese trade row.

“Brent is likely to resume its upward trend in line with its fundamentals, which are tight,” said Harry Tchilinguirian, global oil strategist at BNP Paribas in London. Backwardation, a market structure where the spot price is higher than the price of crude in later months, tends to indicate tight supplies and a drawdown in inventories.Khaled al-Fadhel, oil minister of Opec member Kuwait, said he expected the market to approach balance in 2019 as global inventories fall and demand remains strong. “We still have some more work to do.

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