Oil rose more than 2 percent on optimism over OPEC+ production cuts |
[ Time:2020-06-18 | Hits:414 ] |
| U.S. WTI crude futures closed Monday up 81 cents, or 2.23 percent, at $37.07 a barrel in electronic trading. Oil prices rose more than 2 percent on June 15 as signs of recovering fuel demand and the organization of the Petroleum Exporting Countries (OPEC) and its Allies fulfilling an agreement to cut production overshadowed concerns that the coVID-19 outbreak could further slow the global economy. Meanwhile, ICE Brent Crude for August delivery closed up $1.07, or 2.76 percent, at $39.80 a barrel in electronic trading. Optimism over expected cutbacks supported oil prices Oil prices rebounded after the United Arab Emirates' energy minister expressed confidence that OPEC+ countries that did not adhere to the cut would meet their commitments and there were signs that demand was picking up. PhilFlynn, senior analyst at PriceFuturesGroup, said it seemed to remove some of the negative sentiment from the market. This is the market assessing between concerns about coronavirus and what is actually happening. An OPEC-led monitoring committee will meet Thursday to discuss whether countries have met their share of the cuts. Iraq has reached a deal with major oil companies to further cut crude production in June, Iraqi officials working in the country's large southern oil fields said on Sunday. China's refining capacity rose 8.2 per cent in May from a year earlier, which also had a positive impact on oil prices as independent refiners increased production to meet the recovery in unsealed fuel demand. The US Energy Information Administration (EIA) said on June 15 that production from major shale oil fields in the US in July is expected to fall to its lowest level since July 2018. Demand concerns continue to weigh on oil prices Worries about fuel demand, however, weighed on sentiment. On 13 June, more than 25,000 new cases of novel Coronavirus infection were reported in the United States, bringing to over 2 million the number of infected cases in the United States, accounting for approximately one quarter of the global total. Separately, Germany's economy ministry said on June 15 that economic output would decline further in the second quarter. |