Oil prices climb amid expected OPEC cut, but markets remain wary

Cornelia Mascio
Novembre 19, 2018

Oil prices rose around 1 percent on Monday as traders expected top exporter Saudi Arabia to push producer club OPEC to cut supply toward year-end.

Front-month Brent crude oil futures were at $67.29 per barrel at 0259 GMT, up 53 cents, or 0.8 percent, from their last close.

"Oil prices continued to recover ..."

Weekly exchange data shows money managers hold a combined net long position equivalent to around 364 million barrels of USA and Brent crude futures and options, down from over 800 million barrels two months ago.

Russian Energy Minister Alexander Novak said today that Russia, which is not an OPEC member, was planning to sign a partnership agreement with the group. We'll see if it is right after the next OPEC meeting on December 6.

Despite today's gains, crude prices remain nearly a quarter below their recent peaks in early October, weighed down by surging supply and a slowdown in demand growth.

A trade dispute between the United States and China is one reason investors are a lot warier about the outlook for oil demand growth next year.

A USA decision to grant waivers to some of Iran's oil customers, who faced the prospect of a drop-off in supply from sanctions that came into force in early November, has also helped soothe concern about availability of crude.

Predictably given the pummeling crude prices have taken in recent weeks, oil experienced a minuscule rise on Friday but still fell for a sixth straight week, with expectations of the Organization of the Petroleum Exporting Countries (OPEC) cutting output next month providing not much support against the twin triggers of massive global production and weakening demand.

Babin added that the biggest surprise among the confluence of factors contributing to the sudden bear market for crude was the usa issuing waivers to countries such as China and India so that they can continue to buy oil from Iran.

United States energy firms added two oil rigs in the week to November 16, bringing the total count to 888, the highest level since March 2015, a weekly report by energy services firm Baker Hughes said on Friday.

The speculator group cut its combined futures and options positions on USA and Brent crude during the week ended November 13 to the lowest since June 27, 2017.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE