Breaking News
0

UPDATE 7-Oil recoups some losses, but trade and supply worries dominate

CommoditiesJan 17, 2019 15:37
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. UPDATE 7-Oil recoups some losses, but trade and supply worries dominate

* OPEC cut output sharply in December

* U.S. production nears 12 mln bpd -EIA

* Wall Street slightly higher

* GRAPHIC-US/Russia/Saudi oil output: https://tmsnrt.rs/2Rua0R8 (Updates with settlement prices, market activity, adds commentary)

By Laila Kearney

NEW YORK, Jan 17 (Reuters) - Oil prices steadied on Thursday, boosted by a rebound in U.S. equities and news that OPEC sharply curtailed production in December, after earlier losses on fears about surging U.S. crude output and weakening global demand.

Brent crude oil futures LCOc1 slipped 14 cents to settle at $61.18 a barrel after trading as low as $60.04 intraday. U.S. crude futures CLc1 fell 24 cents to settle at $52.07 a barrel, up from a low of $50.98.

The Organization of the Petroleum Exporting Countries, in its monthly market report, cut its forecast for average daily demand for its crude in 2019 to 30.83 million barrels, down 910,000 bpd from the 2018 average. OPEC/M

However, OPEC also said it cut oil output by 751,000 bpd in December before a new accord to limit supply took effect, suggesting that producers have made a strong start to averting a glut in 2019.

The group and its allies plan to meet on April 17-18 in Vienna to review the supply reduction deal that began in January. thing we've seen in the past - and I think we'll see it again - is that when OPEC over the last couple of years has decided to cut, they've followed through," said Tony Headrick, energy market analyst at St. Paul, Minnesota, commodity brokerage CHS Hedging LLC.

Even as the OPEC-led cuts reduce supplies, U.S. output neared 12 million bpd last week. Some traders and investors are concerned that growth in global supply this year will outpace demand.

"That was a key factor in the losses overnight," Headrick said.

U.S. crude output has climbed by 2.4 million bpd since January 2018 and stockpiles of crude and refined products have risen sharply, U.S. Energy Information Administration data showed. EIA/S

Wall Street's main indexes were slightly higher, helping to steady oil futures, which sometimes track equities. .N

In response to the drop in price in the second half of last year, OPEC and non-members elected to cut production by a joint 1.2 million bpd this year. is still about 20 percent above the lows reached in late December. Analysts said Brent has been trading in the low $60s and U.S. crude in the low $50s due to ongoing nervousness about relations between Washington and Beijing, and China's economic outlook.

For Brent to return to $70 per barrel, the market needs to "not have negative news emerging around U.S.-China trade talks that caused high levels of angst and de-risking last December," BNP Paribas (PA:BNPP) head of commodities Harry Tchilinguirian said in the Reuters Global Oil Forum.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC-U.S. oil production nears 12 mln bpd

https://tmsnrt.rs/2RQ9wJ3 GRAPHIC-Russian, U.S. & Saudi crude oil production

https://tmsnrt.rs/2CTwqaq

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

UPDATE 7-Oil recoups some losses, but trade and supply worries dominate
 

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