Abu Dhabi National Oil announces export cuts

Crude oil prices were slightly higher on Tuesday on the heels of an announcement that Abu Dhabi National Oil Corporation will export 5 percent less oil next month. The cut is United Arab Emirates’ contribution to OPEC’s output cuts. However, some analysts are of the opinion that for the OPEC cuts to do any good, inventories have to decline or demand must increase, neither of which seems to be on the horizon. Inventories are significantly above last year’s levels in both the United States and Europe.

December contracts for Brent crude were 35 cents higher to $59.56 per barrel in London, while West Texas Intermediate crude for December delivery added 33 cents to $59.14 per barrel on the New York Mercantile Exchange.