Oil rises amid concern about supply

Tokyo — Oil prices rose on Monday, adding to gains in the first quarter when the major benchmarks posted their biggest increases in nearly a decade, as concern about supply outweighs the fear of a slowing global economy.

Brent crude for June delivery was up by 43c, or 0.6%, at $68.01 a barrel by 2.14am GMT, having risen 27 percent in the first quarter.

US West Texas Intermediate (WTI) futures rose 32c, or 0.5%, to $60.46 a barrel, after posting a rise of 32% in the January-March period.

US sanctions on Iran and Venezuela along with supply cuts by members of oil cartel Opec and other major producers have helped support prices this year, overshadowing the concern about global growth and the US-China trade war.

However, future gains will be limited by potential softness in the global economy as well as the ability of US oil producers to ramp up production when prices spike, said Phin Ziebell, senior economist at National Australia Bank in Sydney.

“It’s tough to see a really big rally from here,” he said.

Still, analysts have turned cautiously optimistic on crude oil prices this year, a Reuters poll showed on Friday.

US production has also steadied, with the US government reporting on Friday that domestic output in the world’s top crude producer edged lower in January to 11.9-million barrels a day.

US energy firms last week reduced the number of oil rigs operating to the lowest level in nearly a year, cutting the most rigs in a quarter in three years, Baker Hughes energy services firm said.

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