Oil heads to a 2-week gain as OPEC settels global supply

2019-03-15 14:37:47 GMT (Economies.com)
Oil heads to a 2-week gain as OPEC settels global supply

Oil prices turned lower with the opening of the US market on Friday, bringing down the US crude from its highest level in four months, while Brent crude is down for a second straight day, with correction process and profit taking activity, but prices are on track for the second weekly gain in a row as global supply worries fade, as OPEC and its allies continue to support the market in addition to the decrease of the US production for the first time since last December.


As of 13:22 GMT, US crude fell to $57.95 a barrel, over the opening at $58.53, recording its highest since the 13th of November at $58.93 and the lowest at $57.73.


Brent fell to $66.40 a barrel, over the opening at $67.17, recording the highest at $67.69 and the lowest at $66.12.


US crude was up 0.3% on Thursday, the fourth daily gain in a row, while Brent fell 0.6% on correction and profit taking after hitting a four-month high of $68.12 a barrel earlier in the session.


Over the course of the week, global oil prices so far have risen by an average of 3.5%, to be the second weekly gain in a row, as fears of a global supply slump have subsided.


Prices are currently supporting efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and independent producers, led by Russia, known as "OPEC Plus Alliance" to cut about 1.2 million barrels per day (bpd) in order to balance the market.


The OPEC Plus alliance is due to meet in Azerbaijan over the weekend, to review its production policy, with most forecasts suggesting that the alliance will insist on continuing reductions at the moment.


Unlike OPEC's voluntary efforts, US sanctions on Iran and Venezuela have continued to tighten the market and the fears of supply overshoot.


For the US production levels, last week fell by about 100,000 barrels per day, the first weekly decline since the week ending December 7, bringing the total to 12 million barrels per day, leaving its record level of 12.1 million barrels.


"Baker Hughes" releases later today the number of the drilling rigs and exploration platforms operating in the oil fields of the United States, as the last report showed a decline of oil rigs and platforms in the United States by 9 platforms to a total of 834 platforms, in the third-weekly fall, which is the lowest since May, 2018.


China's use of crude oil, the world's largest oil importer, rose 6.1% in January and February to a record of 12.68 million barrel per day in 2018, official data showed this week.

  Symbol Last Change Chg.%
Live Forex Updates