Expectations for more cuts in OPEC output, Oil prices rise

Oil prices rose on Friday as expectations for more cuts in OPEC production provided some support, though concerns over the long-running US-China trade dispute held some earnings capital.

The Brent crude international standard was at $ 57.54 a barrel from 0646 GMT, up 16 cents, or 0.3%, from their previous settlement.

The future US West Texas Intermediate (WTI) futures were $ 52.68 a barrel, up 14 cents, or 0.3%, from their recent close.

Both contracts jumped more than 2% on Thursday to recover from January lows, accompanied by reports that Saudi Arabia, the world’s largest oil exporter, had called on other producers to discuss the slide. crude prices last.

Oil prices have still lost more than 20% of the peaks reached in April, placing them in bear territory.

Global financial markets have been rocked over the past week after US President Donald Trump said he would impose 10% tariffs on more Chinese goods starting in September and as a drop in the Chinese yuan sparked fears of a currency war.

“The attempted oil recovery may be short-lived as the US-China trade dispute offers no real reason to be optimistic,” said Edward Moya, senior market analyst at Oanda in New York.

Bloomberg reported that Washington was holding a decision regarding licenses for US companies to restart business with Huawei Technologies.

Meanwhile, Saudi Arabia, the de-facto leader of the Organization of Petroleum Exporting Countries (OPEC), plans to maintain its crude oil exports below 7 million barrels per day in August and September to bring the market back to equilibrium and helped absorb the global oil inventory, a Saudi oil official said Wednesday.

“Saudi production in September will also be lower than it currently is. This helped crude oil return to its lowest level since January,” the ANZ bank said in a note.

The United Arab Emirates will also continue to support actions to balance the oil market, the country’s energy minister, Suhail al-Mazrouei, said in a tweet Thursday.

The minister said OPEC and the non-OPEC ministerial monitoring committee would meet in Abu Dhabi on September 12th to review the oil market.

OPEC and its allies including Russia agreed in July to extend their supply cuts until March 2020 to boost oil prices./Investing.com

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