Breaking News
0

Oil surges 3 pct on OPEC glut-cut plan, signs of U.S-China thaw

CommoditiesJan 18, 2019 15:22
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Oil surges 3 pct on OPEC glut-cut plan, signs of U.S-China thaw

* To boost confidence in oil cut, OPEC issues quota list

* U.S. drillers cut most oil rigs since Feb. 2016 -Baker Hughes

* China offers to ramp up U.S. imports -Bloomberg

By Laila Kearney

NEW YORK, Jan 18 (Reuters) - Oil prices jumped about 3 percent on Friday, rising after OPEC detailed specifics on its production-cut activity to ease global oversupply, and on signs of progress in ending the U.S.-China trade war.

Brent crude LCOc1 was up $1.52 to settle at $62.70 a barrel, or 2.48 percent. U.S. West Texas Intermediate (WTI) crude futures CLc1 added $1.73 to settle at $53.80 a barrel, or 3.32 percent.

The futures benchmarks posted their third straight week of gains, rising about 4 percent since the close since the previous Friday.

The Organization of the Petroleum Exporting Countries released a list of oil production cuts by its members and other major producers starting on Jan. 1 2019 to boost confidence in its oil supply reduction pact. going to send a signal to the market that they're serious," said Phil Flynn, an analyst at Price Futures Group in Chicago. "And it's probably going to use some peer pressure to make sure compliance stays strong."

The producer group agreed in December to cut 1.2 million barrels per day to support oil prices and shrink an oil glut at a time of rising supply, especially from the United States.

On Thursday, OPEC's monthly report showed it had made a strong start in December before the pact went into effect, implementing the biggest month-on-month production drop in almost two years. drillers cut 21 oil rigs this week, the biggest decline since February 2016. The rig count, an indicator of future production, fell to 852, the lowest since May 2018, General Electric (NYSE:GE) Co's GE.N Baker Hughes energy services firm said in its closely followed report. RIG-OL-USA-BHI RIG/U

Fresh signals that Washington and Beijing might be nearing the end of their tariff fight also boosted markets.

"The oil market has been taking the U.S.-China trade war the hardest because China is so central to the demand side of the equation," said John Kilduff, partner at Again Capital Management. "This is what the market is looking to seize upon to get past this bump in the road."

A Bloomberg report showed China offered to go on a buying spree of U.S. goods, which investors saw as an attempt to draw closer to a trade deal with Washington. reported on Jan. 9 that U.S. officials demanded during trade talks in Beijing more details about China's pledge to make big purchases of American goods. China offered similar commitments on a smaller scale during talks in Washington last May. International Energy Agency kept its estimate of oil demand growth unchanged and close to 2018 levels despite saying U.S. oil production growth, combined with a slowing global economy, would weigh on oil prices. GRAPHIC-Russian, U.S. & Saudi crude oil production

https://tmsnrt.rs/2CTwqaq

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Oil surges 3 pct on OPEC glut-cut plan, signs of U.S-China thaw
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email