Oil heads for sixth consecutive weekly gain

2019-04-12 16:20:29 GMT (Economies.com)
Oil heads for sixth consecutive weekly gain

Oil prices extended their gains as the US market opened on Friday to resume a 15-month high, which was temporarily halted yesterday, on correction from the highest level in five months, heading to the sixth consecutive weekly gain, as prices today were supported by strong Chinese trade data for March, in addition to the ease of the slowdown fears in the Chinese economy which have revived prospects for oil demand in the largest oil importer in the world, with support from the OPEC-led cuts, as well as US sanctions on Venezuela and Iran.


By 13:05 GMT, US crude rose to $64.30 a barrel from the opening of $63.74, with a high at $64.63 and a low at $ 63.63.


Brent crude rose to $71.55 a barrel from the opening of $70.94, and with a high of $71.74, and a low of $70.87.


US crude lost 1.2% yesterday, the second loss in the last three days.on the correction and profit taking, as well as the EIA data, which showed a significant rise in the US crude inventories.


Brent also fell 0.85% on correction and profit taking after recording a five-month high of $71.77 a barrel on Wednesday.


Over the course of the week, global oil prices so far have risen by about 2%, making their sixth consecutive weekly gain, among the longest weekly gains streak since April 2018.


The Chinese government released data showing a large surplus in the trade balance in March, with exports rising by 14.2%, exceeding experts' expectations of 7.3%, and the previous reading at 20.8% in February.


The data reduced fears of a slowdown in the world's second-largest economy and revived prospects for oil demand in China.


Since the start of the year, oil prices have risen sharply, based on the efforts of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, following the pledge to reduce 1.2 million barrels per day of supply from January to June.


Due to this agreement, OPEC production in March fell to its lowest level in four years, with a strong determination on achieving a quick balance in the market.


Production in Venezuela has dropped as US sanctions have deepened the country's economic and political crisis, as the United States is expected to also tighten sanctions on Iran in May.


Venezuela's production fell by 290,000 barrels in March to 732,000 barrels per day, in addition to power cuts in the country, which added more pressure on Venezuela's output.


Jefferies bank said on Friday that Iran's output was stable at 2.7 million bpd, but could receive another blow if the United States slashed the exemptions from sanctions on Iranian oil exports.

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