Published: Thu, February 14, 2019
Economy | By

Oil prices rise on Sino-American trade hopes, upbeat China data

Oil prices rise on Sino-American trade hopes, upbeat China data

The agency also lowered its forecast for demand for OPEC crude, production of which the group has pledged to cut by 800,000 bpd this year as part of an agreement with Russian Federation and other non-OPEC producers such as Oman and Kazakhstan.

Brent crude futures have risen 20 percent in 2019 to around $63 a barrel, but most of that increase took place in early January.

Oil prices rallied yesterday amid signs that the Organisation of Petroleum Exporting Countries (OPEC's) production cuts are taking hold.

WTI has also derived some support after the API reported late on Tuesday a almost 1M barrel drop in U.S. crude oil supplies during last week.

TransCanada is beginning fix and restoration work on the Keystone crude oil pipeline following an oil spill, a spokesman said Wednesday. They closed up 1.5 percent on Wednesday, having touched their highest since February 5 at $54.60 a barrel.

The March production figure means Saudi would be voluntarily cutting output by more than 500,000 bpd below its pledged production level under a deal between the Organization of the Petroleum Exporting Countries and allies led by Russian Federation.

Growing U.S. supply and a potential economic slowdown this year could cap oil markets.


In the report, OPEC said its oil output fell by 797,000 bpd month on month to 30.806 million bpd in January.

The IEA noted that new U.S. sanctions announced in January on Venezuela's state oil company PDVSA have not so far caused market jitters. OPEC's share of that cut is 800,000 bpd.

Oil climbed for a second day as dwindling shipments from two of the world's biggest crude exporters eclipsed another big jump in USA supplies.

Oil has advanced around 19 percent this year as the OPEC+ alliance of producers cut output, but the rally has sputtered in February amid record USA shale drilling.

In the meantime, the political rift between Venezuela and the United States continues with the US sanctions against the South American nation giving prices a slight boost.

In the USA, oil inventories climbed 3.63 million barrels, while supplies of gasoline, heating oil and other fuels added about 3 million barrels more, according to weekly data from the Energy Information Administration.

Output has gone into free fall as the country's isolation has increased, shrinking from 2.4 million bpd in 2016 to 2.0 million bpd in 2017 and 1.5 million bpd in 2018, according to the Joint Organisations Data Initiative.

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