Tuesday , March 21 2023

Brent crude rises & # 39; over US $ 60 per barrel, but the uncertainty limits gain


The increased nearly 3 oil prices percent on Monday, while adding some of the sharp losses last week, but gains were limited by uncertainty over global economic growth and other signs & # 39; increase in supply, including Saudi production record.

The Brent crude futures rose $ 1.68 to stand at $ 60.48 in the bucket, earnings & # 39; 2.9 per cent. U.S. West Texas Intermediate (WTI) crude gained $ 1.21, or 2.4 percent, to close at $ 51.63 per barrel.

The prices on Friday reached lower than in October 2017 among fears intensified & # 39; & # 39 provision; glut. Brent sank to $ 58.41 per barrel, while WTI fell to $ 50.15 per barrel.

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"We look forward to carefully read the advancement of today's oil price due to a technical condition was overwhelming situation that requires only moderate pace of the stock market to strengthen a little short cover." Jim Ritterbusch, president & # 39; Ritterbusch and Associates, said in & # 39; note.

B & # 39; support for oil prices, the US stock markets generally rallied began as Cyber ​​Monday, the biggest online shopping day of the year. The crude futures sometimes follow the equities market.

The prices found some support as crude stocks at the point of delivery for WTI in & # 39; Cushing, Oklahoma, rose by only 126 a barrel from Tuesday to Friday, said traders, and said a report from the firm & # 39; the intelligence Genscape market.

However, concerns about demand and record output from Saudi Arabia were limited for victory Monday

Saudi crude oil production hit 11.1-11.3 million barrels per day (BPD) in & # 39; November high all the time, the industry source said.

Increase in the dollar reduced demand in & # 39; the major emerging market economies, costs & # 39; higher self and the threat to global growth from the trade dispute between the US and China pushed investors outside the axes aligned more closely with the global economy, such as equities or oil.

Funds & # 39; hedging and other money managers increased their bullish position in & # 39; U.S. Crude for the first time in 8 weeks in the week ending f & # 39; November 20, the Commission of the Commodity Future Trading US (CFTC) said on Monday.

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The increase was the first since September and lifted net nets left at their lowest point in & # 39; more than one year.

The market participants are looking & # 39; forward to the meeting of 6 & # 39; December & # 39; the Exporting Petroleum Countries (OPEC) in Vienna. Saudi Arabia is expected to push for cuts & # 39; production & # 39; to 1.4 million BPD by OPEC and its allies.

Goldman Sachs said Monday the G20 meeting this week can & # 39; a catalyst for a rebound in prices of commodities, possibly leading to a reduction in trade tensions US, China and offers greater clarity on potential OPEC oil containment.

Goldman believes that OPEC and other nations will reach an agreement, leading to a recovery in prices & # 39; Brent.

"While we do not think prices & # 39; Brent were entitled to $ 86 per barrel, or believe that they are & # 39; $ 59 with its Brent forecast & # 39; 2019 for $ 70," said Goldman.

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