With Opec likely to ignore Trump, oil prices stabilize

Oil futures steadied on Tuesday on signs that Opec plans to maintain production cuts despite pressure from US President Donald Trump, whose comment criticizing rising crude prices sent the market into a tailspin a day earlier.
Prices fell more than 3.5 percent on Monday, their biggest daily percentage slump this year, after Trump said he wanted the Organization of the Petroleum Exporting Countries to ease its efforts to boost oil prices.
An OPEC source told Reuters on Tuesday OPEC would stick to its agreement to tighten crude supplies regardless of Trump's recent tweet.
Brent crude futures, the global benchmark, rose 67 cents to $65.43, or 1 percent, by 12:22 p.m. EST (1722 GMT). US West Texas Intermediate crude futures were up 36 cents to $55.84.
"The market has started to realize that Donald Trump can't tweet more oil out of the ground, or out of OPEC," said Phil Flynn, analyst at Price Futures Group in Chicago.
"OPEC really wants to get the supplies ... back in line," Flynn said.
Oil prices have risen about 20 percent since the start of the year largely on an agreement by OPEC and non-member producers, including Russia, to reduce production.
The OPEC source said the cartel, along with non-member producers, would continue its supply-cut agreement to balance the market until they see inventories fall to their five-year average. "There is no doubt we will continue with our reduction as planned," the OPEC source said.
OPEC+ agreed in December to cut supply by 1.2 million barrels per day from Jan. 1 for six months.
Growing optimism that the United States and China would secure a trade deal before by a March 1 deadline also boosted prices. Trump on Monday said he may soon sign an agreement with Chinese President Xi Jinping to end a months-long trade war between the two countries. Libya's internationally recognized government agreed with the state oil company to reopen the country's largest oilfield, El Sharara, according to a statement on Tuesday, weighing on prices.
Investors are also looking ahead to weekly figures on US crude inventories. US crude stocks are expected to rise by 3.6 million barrels in weekly inventory reports. The first such report is due at 4:30 p.m. EST (2130 GMT) from the American Petroleum Institute.