Classifieds | Archives | Jobs | About TGT | Contact | Subscribe
Last updated 6 hours, 26 minutes ago
Printer Friendly Version | TGT@Twitter | RSS Feed |
Oil recovers on Opec-led supply cuts
January 12, 2019
 Print    Send to Friend

LONDON: Oil prices rose slightly on Friday, putting them on track for solid weekly gains after financial markets strengthened due to hopes the United States and China may soon resolve their trade dispute.

Tightened supply following Opec-led crude production cuts aided gains, along with positive signals from top central banks which sent global stocks higher after sharp losses in late 2018.

International Brent crude futures were at $61.76 per barrel at 1200 GMT, up 8 cents, while US West Texas Intermediate (WTI) crude futures gained 23 cents to $52.82 per barrel.

WTI and Brent are set for their second week of gains, rising 10 per cent and 8 per cent respectively.

Markets were supported by hopes that an all-out trade war between Washington and Beijing might be averted. Three days of talks concluded this week with no concrete announcements, but higher-level talks may convene later this month.

“Sentiment is greatly improved, and trade talk optimism has helped boost risk appetite,” Jasper Lawler, head of research at London Capital Group, said in a note.

Concerns about the global economy have kept markets in check, however, with signs mounting that China’s growth in 2018 and 2019 would be the lowest since 1990.

Most analysts have downgraded their global economic growth forecasts below 3 per cent for 2019, with some fearing a recession amid trade disputes and spiralling debt.

On the supply side, oil markets are receiving support from supply cuts led by the Organization of the Petroleum Exporting Countries and aimed at reining in a glut that emerged in the second half of 2018.

Playing a key part in the emerging glut was the United States, where crude oil production soared by more than 2 million barrels per day (bpd) in 2018 to a record 11.7 million bpd.

Consultancy JBC Energy this week said it was likely that US crude production was “significantly above 12 million bpd” by this month.

Abhishek Kumar, senior energy analyst at Interfax Energy in London, said higher oil prices so far this year “could well define a near-term trend despite uncertainties surrounding the US-China trade talks.”


Add this page to your favorite Social Bookmarking websites
Post a comment
Related Stories
Oil rises to $51 after steep slide
LONDON: Oil rose to around $51 a barrel on Wednesday on perceptions that a price slide to 2017 lows prompted by economic worries had been overdone amid an Opec-led effort..
Oil output deal to be signed in 3 months: UAE minister
ABU DHABI: A deal to cut oil production by Opec and non-Opec countries will be signed in three months’ time in Saudi Arabia, the UAE’s Energy Minister Suhail Mohammed Far..
Demand for oil set to hit record high
ABU DHABI: There are opportunities for expansion, investment and growth in the oil and gas industry, as demand for energy continues to rise, particularly from the high-gr..
Oil prices likely to top $100 in 2019
LONDON: Commodity traders Trafigura and Mercuria said on Monday that Brent could rise to $90 per barrel by Christmas and pass $100 in early 2019. Oil prices jumped more t..
Oil steadies from previous gains, trade fears affect rally
NEW YORK: Brent oil futures steadied under $74 a barrel on Friday, holding onto gains from the previous session as trade concerns provided a headwind to a further rally...
Advertise | Copyright