Tuesday, 22 January 2019 13:16 WIB |
Oil halted gains near a two-month high as investors weighed concerns over outlook for the global economy against the OPEC+ coalition™s performance on pledged output cuts.
Futures in New York fell 0.7 percent from the close on Friday, when it added 3.3 percent. Bullish signals from the Organization of Petroleum Exporting Countries and its allies on supply curbs have eased investor fears of a glut. Still, trade and political tensions are weighing on prices. Chinese President Xi Jinping signaled fresh concerns about the implications of a slowing economy while the International Monetary Fund cut its global growth forecast.
Oil™s off to the best start in 18 years after a slump in the last quarter as OPEC and its partners began new production curbs aimed at removing 1.2 million barrels a day from the market through June. A drop in the number of rigs drilling for oil in the U.S. to the lowest since May have also eased worries about a glut from record-breaking shale flows. Yet, concerns linger after China™s economy expanded at the slowest annual pace since 1990.
West Texas Intermediate crude for February delivery, which expires Tuesday, was at $53.44 a barrel on the New York Mercantile Exchange, down 36 cents, at 1:03 p.m. in Tokyo. The more active March contract fell 33 cents to $53.71. There was no settlement on Monday because of the Martin Luther King Jr. holiday in the U.S. All transactions will be booked on Tuesday.
Brent for March settlement declined 49 cents to $62.25 a barrel on the London-based ICE Futures Europe exchange. The contract rose 4 cents to $62.74 on Monday. The global benchmark crude was at an $8.53 premium to WTI for the same month.
Source : Bloomberg