Oil keeps rising as US crude hits a 4-month high

2019-03-15 10:15:07 GMT (Economies.com)
Oil keeps rising as US crude hits a 4-month high

Oil prices rose in the European market on Friday, US crude continues rising for the fifth day in a row, recording a new high level in four months, while Brent crude rises after yesterday's decline by correction, the rise comes amid fears of global supply fade, with the continued efforts by OPEC and its allies to support the market, and lower US production for the first time since last December.


As of 08:22 GMT, US crude rose to $58.88 a barrel, over the opening at $58.53, recording its highest since 13th of November at $58.90 and the lowest at $58.48.


On the other hand, Brent rose to $67.60 a barrel, over the opening at $67.17, recording the highest at $67.63 and the lowest at $67.07.


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 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, 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.


While 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.


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.

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