Saturday, Sep 19, 2020 | Last Update : 12:37 PM IST

179th Day Of Lockdown

Maharashtra114584081235431351 Andhra Pradesh6095585198915244 Tamil Nadu5309084757178685 Karnataka5029823940257808 Uttar Pradesh3362942632884771 Delhi2347011981034877 West Bengal2155801870614183 Odisha167161133466722 Telangana1670461353571016 Bihar164224149722855 Assam150349121610528 Kerala12221687341490 Gujarat119088999083271 Rajasthan109088906851293 Haryana103773816901069 Madhya Pradesh97906743981877 Punjab90032658182646 Chhatisgarh7777541111628 Jharkhand6710052807590 Jammu and Kashmir5971138521951 Uttarakhand3713924810460 Goa2678320844327 Puducherry2142816253431 Tripura2069612956222 Himachal Pradesh11190691997 Chandigarh92566062106 Manipur8430653951 Arunachal Pradesh6851496713 Nagaland5306407910 Meghalaya4356234232 Sikkim2119178923 Mizoram15069490
  Business   Market  16 Oct 2019  Oil prices edge higher as OPEC hints at deeper output cuts

Oil prices edge higher as OPEC hints at deeper output cuts

REUTERS
Published : Oct 16, 2019, 12:13 pm IST
Updated : Oct 16, 2019, 12:13 pm IST

US West Texas Intermediate (WTI) crude CLc1 had gained 16 cents or 0.3 per cent to USD 52.97 a barrel.

OPEC, Russia and other producers have cut oil output by 1.2 million barrels per day to support the market.
 OPEC, Russia and other producers have cut oil output by 1.2 million barrels per day to support the market.

Singapore: Oil prices rose on Wednesday, tracking gains in equities, as investors pinned hopes on a potential Brexit deal between Britain and the European Union and on signals from OPEC and its allies that further supply curbs could be possible.

But gains were limited due to lingering concerns of a global economic slowdown.

 

Global benchmark Brent crude oil futures LCOc1 had risen 21 cents to USD 58.95 by 0310 GMT, up about 0.3 per cent from the previous day’s close. US West Texas Intermediate (WTI) crude CLc1 had gained 16 cents or 0.3 per cent to USD 52.97 a barrel.

“Oil is starting to see some bullish positions added on the easing of two big tail risks for global demand, the US-China trade war and Brexit,” said Edward Moya, a senior market analyst at OANDA in New York.

“While a broader trade deal seems unlikely in the immediate future, the risks for the US-China trade war have been fading.”

Last-ditch talks between Britain and the European Union to get a Brexit deal ahead of a summit of the bloc’s leaders this week ran past midnight to Wednesday, but it was still unclear if Britain could avoid postponing its departure, due on Oct 31.

 

Analysts have said any deal that avoids a “hard” or no-deal Brexit should boost economic growth and in turn oil growth and prices.

Providing more support, OPEC Secretary-General Mohammad Barkindo said the Organization of the Petroleum Exporting Countries “will do whatever (is) in its power” along with its allied producers to sustain oil market stability beyond 2020.

OPEC, Russia and other producers have cut oil output by 1.2 million barrels per day to support the market.

Yet an expected rise in US crude inventories this week kept prices under pressure.

US crude stocks probably grew for the fifth straight week, a preliminary Reuters poll showed.

 

US oil inventory reports are due out from industry group the American Petroleum Institute on Wednesday and the US Energy Information Administration on Thursday. The reports have been delayed one day because of a US government holiday.

“Should EIA inventories illustrate for a fifth consecutive week build, we expect for strong selling pressure to afflict oil prices on an intraday basis,” Benjamin Lu from Phillip Futures said in a note.

Concerns of a global economic slowdown due to a lingering trade war between the United States and China and swelling US inventories also pressured prices.

The US-China trade war will cut 2019 global growth to its slowest pace since the 2008-2009 financial crisis, the International Monetary Fund warned on Tuesday.

 

Tags: oil price, opec, crude oil
Location: Singapore, , Singapore