Oil up on tight supply, but economic slowdown weighs

Oil prices rose on Wednesday back toward five-month highs hit the previous day as OPEC production cuts and U.S. sanctions on Iran and Venezuela continued to tighten supply, although economic worries increased.

International benchmark Brent futures were at $70.92 per barrel at 0900 GMT, up 31 cents, or 0.44 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude oil futures were at $64.33 per barrel, up 35 cents, or 0.55 percent, from their last settlement.

Oil markets have tightened this year because of U.S. sanctions on oil exporters Iran and Venezuela, as well as supply cuts by the Organization of the Petroleum Exporting Countries and some non-affiliated producers including Russia, a group known as OPEC+.

Brent and WTI crude oil futures have risen by around 30 percent and 40 percent respectively since the start of the year.

“The global oil market is clearly moving back towards balance thanks to OPEC+ production cuts,” ING bank said.