Oil rises to $58.53; lifted by OPEC cuts, steadying stock market

09 January, 2019, 15:55 | Author: Mary Valdez
  • Goldman cuts 2019 crude price view; sees recovery from current levels

Brent crude, the global benchmark, was trading 2.5 per cent up at $58.60 a barrel last night as officials from the two countries began talks yesterday.

Goldman Sachs downgraded its 2019 crude oil price view, but forecast a recovery from present levels in the absence of a "large" global economic slowdown and improving fundamentals along with signs of major producers trimming their production.

Oil prices have also been receiving support from supply cuts started at the end of 2018 by a group of producers around the Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC member Russian Federation. The U.S. administration on Monday expressed optimism it can reach a "reasonable" trade deal, and Trump has given Trade Representative Robert Lighthizer until March 1 to negotiate an accord. That wrong-footed OPEC with Saudi Arabia and Russian Federation both pumping more than 11 million b/d at that time in a bid to offset the risk of lost Iranian barrels and left the market awash with crude.

The market has anticipated that talks between Chinese officials and the US trade representatives that began on Monday would yield positive results, as smooth global trade would help encourage oil demand. Both WTI and Brent oil are in a bear market, usually defined as a drop of at least 20% from a recent peak. Oil refiners in the world's top crude-importing region are racing against the clock to restart and ramp-up purchases from Iran before U.S. President Donald Trump has a chance to change his mind. The CEO of Qamar Energy, the energy consulting organization has also stated that the most prominent factor on the demand side is the economic outlook. Most investment banks see strong price gains in 2019, even if many of them do not see WTI and Brent returning to the highs seen last October.

Goldman cuts 2019 crude price view; sees recovery from current levels
Oil to trade at up to $70 per barrel by H2, says Apicorp

Aside from the U.S. Meanwhile, the USA and China resumed trade negotiations this week, widely seen as a small sign of a thaw in the trade war.

"Saudi Arabia will continue to be the decisive factor for the markets this year, just as they were last year", said Mr Eugen Weinberg, head of commodities research at Commerzbank in Frankfurt. "Stripping out Qatar, which exited OPEC at the end of the month, and Iran, Libya and Venezuela, which were granted exemption from the latest round of cuts, the remaining 11 members pumped 26.89 million b/d-almost 1 million b/d above their collective ceiling of 25.94 million b/d, which went into effect January 1", the survey showed. Gasoline stocks rose by 6.9 million barrels, more than thrice the expected increase.

February natural gas NGG19, +0.98% settled at $2.967 per million British thermal units, up 0.8%, after a 3.3% drop on Monday.

Saudi asylum-seeker refuses to meet father, Thai police say
The United Nations has deemed Rahaf Mohammed Alqunun to be a refugee, referring her case to Australia. Her father and brother arrived in Bangkok on Tuesday evening and have asked to see Alqunun.

'Strong mutual interest' between Cardinals, head coaching target Kliff Kingsbury
Kingsbury is reportedly a "serious candidate" for the Cardinals' vacancy, according to team sideline reporter Paul Calvisi. But NFL Network's Ian Rapoport said the school had granted approval for Kingsbury to interview with the Cardinals.

U.S., China could settle immediate trade issues - Ross on CNBC
The president has taken heart in China's faltering economy, repeating that it makes Beijing more likely to strike a deal. Hong Kong's Hang Seng climbed 0.7 percent to 25,814.40 and the Shanghai Composite index gained 0.6 percent to 2,529.21.



Tesla breaks ground on Shanghai plant as trade war lingers
Tesla CEO Elon Musk announced on Twitter Sunday night that the company would break ground on its new Chinese factory on Monday. Tesla is eager to get the factory up and running as soon as possible so it can begin constructing select models locally.

India end 71-year wait for Test series victory in Australia
However it was their batting that let them down and a one piece of statistic will scare the die-hard Aussie fans. What we missed in South Africa, In England, we have taken those lessons, and we have implemented in this series.

China names new moon rover "Yutu-2"
The other side, most of which can not be seen from Earth, is called the far side, or dark side, because most of it is uncharted. The six-wheeled rover, known as Yutu 2, isn't pausing to catch its breath, as a newly released photo shows.

US Expresses Optimism About Trade Talks with China
Officials had expected to wrap up on Tuesday, but surprised observers by returning to the negotiating table for a third day. As with previous operations, the Chinese Ministry of Foreign Affairs condemned the USA operation.

LS passes Citizenship (Amendment) Bill while NE observes total shutdown
Replying to a debate on the Bill, Home Minister Rajnath Singh said, the bill is not just for Assam but for other states too. In Dehi Trinamool Congress MPs staged a protest in Parliament against the Citizenship Bill .

Rangers agree deal for Jermain Defoe from Bournemouth
There have been ups and downs, but since the day I arrived I have given my all to play my part in pushing this club forward. Obviously the Old Firm result was massive for everybody and it was a massive psychological boost for the boys as well.

Elliott, Cowboys power past Seahawks for 24-22 wild-card win
Brian's a helluva coach and he does a great job and he did a great job with our guys throughout the season and will continue to". There's only one way to do it and that's got to be your mentality". "This has been a special, special year", Wilson said.

A Biopic On Narendra Modi! Here’s How Omung Kumar Feels About It
On Monday, leading film trade analyst Taran Adarsh took to twitter and unveiled the first look of the biopic. The actor believes that Modi's life has enough substance for it to be a source for several films.

Sara Ali Khan’s photos with Simmba team is unmissable, check it out
In " Simmba ", Ajay Devgn made a cameo appearance in his popular role of " Singham " to rescue " Simmba " from villains. The makers of " Simmba " hosted a success party for their cast and crew along with film industry friends here.

Los Angeles Chargers hold off Baltimore Ravens to progress in National Football League play-offs
The good-natured debate happened a day before the Chargers faced the Ravens in an AFC Wild Card playoff game in Baltimore. Okung was also flagged during a pivotal moment of the game when the Chargers and Ravens played in back in Week 16.