Breaking News
0

Oil Set for Weekly Gain Amid OPEC+ Cuts and U.S.-China Talks

CommoditiesFeb 15, 2019 08:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Bloomberg. Oil pipes run through the Juaymah tank farm at Saudi Aramco's Ras Tanura oil refinery and oil terminal in Ras Tanura, Saudi Arabia. Photographer: Simon Dawson/Bloomberg 2/2

(Bloomberg) -- Oil headed for its biggest weekly gain in a month as OPEC and its allies pressed on with supply cuts, while trade talks between the U.S. and China offered some reassurance over energy demand.

Futures in New York rose 0.9 percent on Friday, taking this week’s gain to 4.2 percent. President Xi Jinping said U.S.-China trade talks would continue next week in Washington, as the two sides race to reach a deal that would avert a tariff increase on Chinese goods after March 1. Russia plans to accelerate the output cuts it agreed to with OPEC+, while Saudi Arabia was said to curtail supply from the biggest offshore field to repair a damaged power cable.

Oil has resumed its rally this week -- taking its advance this year to about 20 percent -- after Saudi Arabia announced it would cut supply even further than agreed under a deal with fellow members of the Organization of Petroleum Exporting Countries and its allies. Still, record production and rising inventories in the U.S., together with prospects for weaker global growth, are capping gains.

“The main drive of the upward momentum in oil prices finds its roots in the aggressive output cuts announced by the Saudi oil minister,” said Harry Tchilinguirian, head of commodity-markets strategy at BNP Paribas (PA:BNPP) SA in London. Also buoying prices is “the elephant in the room, which is Venezuela.”

Venezuelan exports are facing further disruption as the White House considers blocking foreign entities from dealing with the country’s state oil giant Petroleos de Venezuela SA. The move would be a possible next step as the U.S. seeks to choke off President Nicolas Maduro’s power.

West Texas Intermediate for March delivery rose 41 cents to $54.82 a barrel on the New York Mercantile Exchange at 8:21 a.m. local time. It has added $2.13 this week.

Brent for April settlement climbed 50 cents to $65.07 a barrel, near the highest level since November, on the London-based ICE (NYSE:ICE) Futures Europe exchange. It has gained 4.8 percent this week, and was at a $9.84 premium to WTI for the same month.

Saudi Arabian Oil Co.’s Safaniyah field has the capacity to pump 1.2 million to 1.5 million barrels of crude a day, and is a major component of the Arab Heavy grade. The cable was damaged in an accident about two weeks ago and repairs are expected to be completed by early March, people with knowledge of the matter said.

Oil Set for Weekly Gain Amid OPEC+ Cuts and U.S.-China Talks
 

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