2019.03.2607:19:00UTC+00Oil Prices Rise As Recession Fears Recede

Oil prices rose sharply on Tuesday as worries over a possible recession receded and investors expect the supply cuts will continue through the rest of 2019.

Benchmark Brent crude climbed 0.8 percent to $67.35 per barrel while U.S. West Texas Intermediate (WTI) futures were up 1.2 percent at $59.55 per barrel.

Prices remain supported by ongoing supply cuts led by OPEC and non-affiliated allies like Russia, who have pledged to withhold around 1.2 million barrels per day (bpd) of supply this year to prop up markets.

The U.S. sanctions against Iran and Venezuela also helped investors shrug off signs of a sharp economic slowdown.

U.S. 10-year Treasury yields recovered slightly from 2017 lows hit in the previous session, helping ease fears over a possible U.S. recession.

U.S. economic growth is slowing but is still robust, Chicago Federal Reserve Bank President Charles Evans said on Monday. He put the chances of a recession at no more than 25 percent.

Separately, former U.S. Federal Reserve chair Janet Yellen said at a Credit Suisse forum on Asian investment that the slowdown in U.S. growth is something that was long expected and it is unlikely to drop to a level that will cause a recession.

The focus will now be on weekly oil reports from the American Petroleum Institute (API) and the Energy Information Administration (EIA) due today and tomorrow.