Economy

Oil edges up on supply cuts; trade worries limit gains

Oil edges up on supply cuts; trade worries limit gains”

Opec+, which includes most Opec members, along with a number of non-Opec producers led by Russian Federation, agreed last week to extend its pact to cut 1.2 million barrels per day (Mmbpd) from the world market until March 2020. Brent has risen nearly 20% in 2019, supported by the pact and tensions in the Middle East, especially the row over Iran's nuclear program. U.S. West Texas Intermediate (WTI) crude futures rose 40 cents, or 0.7%, to $57.93 a barrel.

Supporting prices was an Iranian military official's comments that Britain's seizure last week of an Iranian oil tanker off the coast of Gibraltar will not be "unanswered", according to the semi-official Tasnim news agency.

"That the market reacts so little to the tense situation in the Middle East is a reflection of a very well-supplied market in general and a very relaxed market", said SEB chief commodities analyst Bjarne Schieldrop.

Washington has imposed sanctions that eradicate advantages Iran was meant to obtain in return for agreeing to curbs on its nuclear program below the 2015 take care of world powers.

Washington withdrew from the accord past year and re-imposed sanctions. -China trade war, heading into its second year, curb prospects for global economic growth, which impacts oil demand.

Strong U.S. economic data also put a floor under prices.

The world's two largest oil consumers are set to relaunch trade talks this week, although there are few signs their differences have narrowed.

The U.S. Energy Information Administration report on crude oil inventories is due to be released at its regularly scheduled time on Wednesday at 10:30a.m. EST.

Oil fell on Tuesday amid worries over the outlook for demand after the most recent indicators that worldwide commerce disputes have been dragging on the worldwide economic system, though the potential for conflicts within the Center East supplied assist to costs.

"It's because of trade wars and tariffs", said Andy Lipow, president of Lipow Oil Associates in Houston.

The U.S. and global benchmarks have gained this year as the Organization of the Petroleum Exporting Countries (OPEC) and big producers such as Russian Federation have honoured commitments to cut output.

It was the sixth consecutive month that the EIA revised its 2019 demand forecast.

"The Russian story definitely supports prices today".

The American Petroleum Institute (API) reported a huge crude oil inventory draw of 8.129 million barrels for the week ending July 4, compared to analyst expectations of a smaller 3.081-million barrel draw. "The stimulus could come in the form of a sharp change in USA crude oil inventories".



Like this

loading...
loading...

Latest


10 July 2019
‘Tough to swallow’: Barty finds Wimbledon title bid is Riske business
That would be wise after the 29-year-old American ousted world number one Ashleigh Barty in the last 16. Alison Riske is the talk of the tennis world after sending Ash Barty crashing out of Wimbledon.

10 July 2019
Nokia 9 PureView comes to India for Rs. 49999
Other specifications of the phone include 128GB of inbuilt storage and 3,320mAh battery with wireless charging support. In addition, Nokia 705 Earbuds worth Rs 9,999 will be given out for free with Nokia 9 PureView for a limited period.

10 July 2019
Mexico calls USA investigation its steel 'normal'
The Commerce Department said the determination is preliminary, but the tariff goes into effect immediately. Mexico would continue to "participate actively" in anti-dumping procedures, the ministry said.

10 July 2019
Jeffrey Epstein: Labor Secretary Alex Acosta 'pleased' prosecutors moving forward
They're so obsessed with this president that they immediately go to Alex Acosta rather than Jeffrey Epstein . This was known by @POTUS when he appointed him to the cabinet.

10 July 2019
Investigators recover helicopter that crashed in Bahamas
Then Delaney "went to the Bahamas to meet her childhood best friend", Kameron Cline, whom she had not seen in about a year. The heiress's best friend insisted on coming along in case she could lend a hand, Wykle's mother said.

10 July 2019
Freed Australian student denies spying in N. Korea
South Korea's Unification Ministry said Choe was in North Korea without special permission from the Seoul government. Alek Sigley walking through the terminal building arrives at Haneda Airport in Tokyo on July 4.

10 July 2019
Neymar can leave if we get an offer: PSG Director Leonardo
However, fellow former Barca and Spain worldwide Lobo Carrasco believes Neymar's return would cause problems defensively. He added: "We couldn't postpone them and he will return (to PSG ) on July 15". "We have not received any offers".

10 July 2019
Amy left 'Love Island' with some very wise and mature words
The news comes after last night's shock elimination which saw Danny and Jourdan voted the least favourite couple and eliminated. Here's everything you need to know! "I love you all so much and I can not tell you what you've all done for me".

10 July 2019
Google suspends shady Samsung update app
In other words, don't trust just any old app in the Play Store or any other third-party apps, no matter how official it looks. According to data collected in the last few years, Apple devices users pay more for apps and services than Android users.

10 July 2019
Sir David Attenborough stresses 'radical' change needed to combat climate change
Attenborough opened the session by recalling his most vivid memory of seeing climate change occur at the Great Barrier Reef. Attenborough took aim at the U.S. and Australia as countries where climate science denial was particularly strong.