Oil held firm above $71 a barrel on Tuesday, despite OPEC's assurance that it will do all it can to keep consumers well-supplied when it meets later this week.
U.S. crude for July delivery was trading up 36 cents at $71.73 a barrel by 1030 GMT, after a high of $71.77. London Brent crude was up 34 cents at $70.93. Both markets were closed on Monday for holidays.
OPEC President Edmund Daukoru told Reuters on Monday the cartel will probably keep output quotas unchanged at its ministerial meeting in Caracas on Thursday and keep pumping as much as it can to ease concern of a shortage.
Prices are responding to growing tensions between Iran, OPEC's second largest producer, and the U.S. over Iran's nuclear work, he said. They are also jittery over the forthcoming hurricane season in the Gulf of Mexico and new environmental laws on motor fuels in the U.S., he added.
"These are all symptoms of a tight market where small disruptions have a disproportionate response," he said. "It's a crazy countercyclical situation."
Supply losses in Africa's top producer Nigeria and a flow of investor money into commodities are also helping to keep oil within sight of record highs above $75 a barrel hit last month.
Gold edged higher on Tuesday while other metals such as copper were steady.
U.S. crude for July delivery
OPEC President Edmund Daukoru told Reuters on Monday the cartel will probably keep output quotas unchanged at its ministerial meeting in Caracas on Thursday and keep pumping as much as it can to ease concern of a shortage.
Prices are responding to growing tensions between Iran, OPEC's second largest producer, and the U.S. over Iran's nuclear work, he said. They are also jittery over the forthcoming hurricane season in the Gulf of Mexico and new environmental laws on motor fuels in the U.S., he added.
"These are all symptoms of a tight market where small disruptions have a disproportionate response," he said. "It's a crazy countercyclical situation."
Supply losses in Africa's top producer Nigeria and a flow of investor money into commodities are also helping to keep oil within sight of record highs above $75 a barrel hit last month.
Gold edged higher on Tuesday while other metals such as copper were steady.
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