Prospect of OPEC Cut Drives Oil Up Monday, Markets Still Cautious
Nov. 19, 2018
On Monday, oil prices rose as market players are expecting OPEC and its coalition to decide the supply cut towards the end of this year.
Brent crude oil futures were up by 53 cents or 0.8% from the last close to USD67.29/barrel. The U.S. WTI rose by 61 cents or 1.1% at USD57.07/barrel.
Analysts viewed that the market is still anticipating OPEC and non-members coalition of oil producers to decide a sizable cut number. At the moment, the organization is pushing for a cut between 1-1.4 million bpd of supply to balance the oil market.
However, on the demand side, the trade war between the U.S. and China still weaken the sentiment. Japan’s crude oil imports fell by 7.7% year-on-year in October.
On the other hand, supply in the U.S. was soaring with oil rigs count reached 888 in the week ended November 16. The number was the highest since March 2015, as reported by Baker Hughes on Friday.
The financial markets have been cautious by the oil sector’s development. Money managers curbed their bullish wagers on crude oil futures and options until they reached the lowest level since June 27, 2017.