Tuesday , January 26 2021

Oil prices rise in trade negotiations and cuts in cuts, but the concerns of the global economy are far-reaching by Reuters

© Reuters. A rainbow is found on a pumpkin during sunset outside Skibenard

By Henning Glowstein

Singapore (writers) – Oil prices have increased by about 1% on Monday, optimism has been lifted, that negotiations can soon address a trade war between the United States and China, while the market has been supported by cuts in supply cuts by large manufacturers.

Brent Crude Futures () was at his 5760 $ per barrel, with his last imposition of $ 111 GMT, 55 cents or two percent.

US West Texas Intermediate (WTI) crude oil futures () 48.49 dollars, 53 cents or 1.1 percent per barrel 53.

Beginning on Monday, the expectations of trade negotiations between Washington and Beijing have lifted the initial financial markets on Monday, which will lead to ease of tension between the world's two largest economies.

The United States and Beijing have been locked in the growing trade space since the beginning of 2018, raised import tariffs on each other's goods. The controversy has emphasized economic development.

"In the beginning of 2019, there has been a greater understanding of the risk of reducing global growth forecast … (and) the global growth rate of 3% globally seems to be increasing in the next two quarters," said JP Morgan of the U.S. bank. Note.

More fundamental for oil markets, merchants said that crude prices are being supported by the supply cut started late last year by a group of manufacturers around Petroleum Exporting Countries (OPEC) and the Middle East-dominated organization of Russia.

Emirates NBD Bank said in a note released on Sunday that the cut in OPEC's new production has affected the beginning of the year and market survey of OPEC output shows that large manufacturers have started initially.

Opaque oil supply dropped to 460,000 barrels per day (BPD) in December to 32.68 million bpd, which resulted in the top exporters Saudi Arabia cut in the Reuters survey found last week.

But all the factors point to a higher price.

In the United States, crude oil production According to weekly data by the Energy Information Administration (EIA) released on Friday, the record last week of 2018 was at 11.7 million barrels per day (BPD).

It makes the United States the world's largest oil producer from Russia and Saudi Arabia.

Record output US Fuel stockpiles also swell.

Crude oil inventories The week ended December 28 rose 7,000 barrels to 441.42 million barrels.

However, shares of distillate and gasoline increased 9.5 million and 6.9 million barrels, respectively, of 119.9 million and 240 million barrels, respectively, according to the EIA figures.

Stephen Innes, head of Asia-Pacific trading at Futures Brokerage Anda in Singapore, said, "The US. Supply glut is concerned about slowdown.

(Graphic: U.S. oil production, drilling and storage levels – https://tmsnrt.rs/2GVNTmb)

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