Friday, January 18, 2019

Oil recovers .. Concern about supply dominates the market


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Brent crude for the day closed at $ 61.18 a barrel, down from $ 60.04.

US benchmark WTI crude fell 24 cents to settle at $ 52.07 a barrel after recovering from a low of $ 50.98.

The Organization of the Petroleum Exporting Countries cut its average daily demand for its oil in 2019 to 30.83 million bpd, down 910,000 bpd from the average demand in 2018.

But OPEC also said it cut oil production by 751,000 bpd in December before a new deal to curb supplies came into effect, indicating that producers had made a strong start to avoid oversupply in 2019.

The group said it was planning a meeting with its allies on April 17 and 18 in Vienna to review the cut-off agreement, which came into force in January.

On the other hand, data from the US Energy Information Administration showed that oil production in the United States jumped by 2.4 million barrels per day since January 2018 and crude stocks and refined products recorded sharp increases.

US stocks rose on Wall Street, helping stabilize oil contracts that sometimes follow equity markets.

Oil prices remain around 20 percent higher than their low levels in late December.

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Brent crude for the day closed at $ 61.18 a barrel, down from $ 60.04.

US benchmark WTI crude fell 24 cents to settle at $ 52.07 a barrel after recovering from a low of $ 50.98.

The Organization of the Petroleum Exporting Countries cut its average daily demand for its oil in 2019 to 30.83 million bpd, down 910,000 bpd from the average demand in 2018.

But OPEC also said it cut oil production by 751,000 bpd in December before a new deal to curb supplies came into effect, indicating that producers had made a strong start to avoid oversupply in 2019.

The group said it was planning a meeting with its allies on April 17 and 18 in Vienna to review the cut-off agreement, which came into force in January.

On the other hand, data from the US Energy Information Administration showed that oil production in the United States jumped by 2.4 million barrels per day since January 2018 and crude stocks and refined products recorded sharp increases.

US stocks rose on Wall Street, helping stabilize oil contracts that sometimes follow equity markets.

Oil prices remain around 20 percent higher than their low levels in late December.

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