After the extension of the production reduction agreement, oil prices jump again to $72 a barrel.
Oil prices on Tuesday offset early losses after SaudiArabia said the producers' agreement to cut production from January could beextended after June to cover the entire year.
It's noted that prices were under pressure early todayafter data from China's factory activity gained control over the financialmarkets, including crude oil contracts, indicating that Asia's biggest economywas still struggling to regain momentum.
US crude oil prices also rose yesterday as the marketsought to resume the ascent tide that lasted for weeks and stopped on Fridaywhen Trump called on OPEC to increase oil production and lower oil prices toease the impact of US sanctions on Iran. Trump's statement incited the sales atfirst; temporarily curtailing a 40% increase in oil prices since the beginningof the year.
The surge in oil prices gained momentum in April after Trump tightened sanctions on Iran by ending all exemptions it had given earlier to major oil buyers from Tehran. A senior Iranian official was quoted as saying on Monday that US sanctions on Iran's oil sector would damage the stability of global crude markets.
US sanctions on Venezuela are also hampering globalsupplies, while fighting in Libya is also curbing production there. Traders saythe market's focus is shifting to voluntary cuts to OPEC-led supplies, whichinclude Saudi Arabia, the world's top oil exporter.