Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Oil Prices Jump as IEA Highlights OPEC Cuts

Published 01/18/2019, 09:22 AM
Updated 01/18/2019, 09:22 AM
© Reuters.

Investing.com - Crude prices jumped on Friday after a report from the International Energy Agency pointed to recent output cuts from OPEC, but also said output from the U.S. will be a major factor this year.

West Texas crude oil futures for February jumped 1.08% to $52.64 a barrel as of 9:21 AM ET (14:21 GMT). Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., rose 1.01% to $61.80 a barrel.

OPEC and non-OPEC producers agreed in December to keep 1.2 million barrels per day (bpd) off the market, starting in January. A report on Thursday from the group showed that OPEC nations dipped 751,000 bpd to nearly 31.6 million bpd, with Saudi Arabia as the driving force.

"While the other two giants voluntarily cut output, the U.S., already the biggest liquids supplier, will reinforce its leadership as the world's number one crude producer," the Paris-based IEA said Friday.

"By the middle of the year, U.S. crude output will probably be more than the capacity of either Saudi Arabia or Russia."

The IEA kept its outlook for demand unchanged in 2019, at 1.4 million bpd. Higher prices in 2018 should fade, offsetting the cooling economic growth, the agency said.

Meanwhile, investors are looking ahead to weekly rig count data from Baker Hughes, which is considered a leading indicator of demand for oil products.

In other energy trading, gasoline RBOB futures rose 0.45% to $1.4365 a gallon, while heating oil increased 0.33% to $1.8905 a gallon. natural gas futures slumped 4.72% to $3.252 per million British thermal units.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.