Crude Oil Prices Shrug off Trade Jitters Amid Deeper OPEC Output Cuts
Investing.com
Published Aug 27, 2019 01:53PM ET
Updated Aug 27, 2019 02:27PM ET
Investing.com - Crude oil climbed higher on Tuesday, clawing back losses from a day earlier following a bullish report pointing to deeper OPEC production cuts.
On the New York Mercantile Exchange WTI futures rose 1.57% to $54.40 a barrel, while on London's Intercontinental Exchange, Brent added 0.79% to $58.58 a barrel.
The Joint Ministerial Monitoring Committee of OPEC and non-cartel oil producers (OPEC+) reported that OPEC+ production limits, in place since the end of last year, have reached 159% compliance in July 2019, up 22 percentage points from a month earlier.
The committee also said it expected "significant" crude inventory declines in the second half of the year.
The deeper cuts come as many traders grow concerned that a slowing global economy, mainly driven by the U.S.-China trade war, will dent oil demand growth, pressuring prices.
The outlook on trade remains uncertain as Beijing hit back at claims by President Donald Trump, who recently said that China wants to make a deal “very badly.”
“China's economy is increasingly driven internally, it's more and more difficult for the U.S. to press China to make concessions,” said Hu Xijin, the editor of China Global Times and an unofficial voice of China's government.
Oil prices were also propped up by expectations for a second-straight weekly draw in U.S. oil inventories, with the Energy Information Administration (EIA) set to release its latest petroleum data on Wednesday.
The EIA is expected to report that crude stockpiles fell by 2.1 million barrels for the week ended Aug. 23.
“Oil could see some support from tomorrow's crude energy report," said Edward Moya, a market analyst at Oanda.
"After hitting consistent record-high production levels earlier in the year, the pace of U.S. output has steadily slowed down and oil could start to see more support as energy markets continue to tighten,” he added.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.