Oil Update: Strong demand in China meets supply glut from OPEC and US

Oil prices were relatively stable on Tuesday despite the excessive production from the producers in US and OPEC members.

Brent crude futures, the international benchmark for oil prices, were at $48.55 per barrel at 0130 GMT, up 13 cents, or 0.3 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $46.12 per barrel, up 10 cents, or 0.2 percent.

However, signs of rising demand from China have spurred an increase in oil imports. Despite this, the prices of oil have fallen by 50 percent in the last three years. The supply glut has been met with a strong demand from the China holding the prices to a certain degree.

The OPEC members’ non-compliance has resulted in an oversupply in the oil market. The OPEC members agreed to cut output in the incumbent year to help prices rise in the global markets.