Crude oil prices hit year's peak on output cuts, geopolitics

Singapore

CRUDE oil prices bounced back resolutely and hit a peak for this year on Tuesday as the market shifted its gaze from global macro woes that could hurt oil consumption to upside news for the commodity - dwindling output and geopolitics.

"Opec's (Organization of the Petroleum Exporting Countries) massive cuts across the last four months have moved the crude market from finely balanced to one that is in deficit," said OCBC Bank economist Howie Lee, citing a key factor that is keeping prices elevated.