Brent extends gains, hits 3-month high

2020-06-01 12:39:56 GMT (Economies.com)
Brent extends gains, hits 3-month high

Brent crude continued to rise as the US market opened on Monday, hitting a 3-month high, as fears eased about the tensions between the US and China over Hong Kong, in addition to expectations for a sharp drop in OPEC output during June.

 

Brent crude rose 1.8% to the highest since March 11 at $38.28 a barrel, after it opened at $37.60, and hit an intraday low of $37.34.

 

Brent July futures gained 6.5% on Friday, posting its second daily gain, after President Donald Trump's remarks on Hong Kong.

 

Brent also gained 41% during May, which is its largest monthly gain since September 1990, on a quick market balance hopes, on strong signs about the recovery of the global demand, and the OPEC-Plus production cut agreement.

 

President Donald Trump announced sanctions on some Chinese officials during his last press conference about the Hong Kong crisis on Friday, and directed his administration to end the special trade relationship with Hong Kong.

 

Trump did not mention the US trade relations with China or threatened to impose new tariffs, which eased market's fears of renewed tensions between the world's two largest economies.

 

Most experts expect a significant drop in OPEC output this month, especially after several members pledged to voluntarily cut production.

 

Saudi Arabia has confirmed that it will cut its oil production starting from June by 1 million barrels per day in addition to its share in the OPEC-Plus cut agreement, which is around 40% of the total Saudi production to reach 7.5 million bpd.

 

The comes in Saudi Arabia's aims to speed up the market balancing and to stop the falling prices, in addition to the United Arab Emirates and Kuwait, pledges to cut their output further by 180,000 barrels per day.

 
 
 
  Symbol Last Change Chg.%
1.2122
0.0125
1.0457%
1.3437
0.0067
0.4989%
Tadawul
8674.97
-16.53
0.19%
24.195
1.948
8.756%
46.130
0.800
1.765%
49.09
0.38
0.78%
1837.765
61.585
3.467%
 
 
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