Oil companies: the slowdown in China is not as marked as expected

SINGAPORE: Oil prices firmed on Monday after data showed that the economic slowdown in China was not as large as predicted by some badysts, with the reduction in supply driven by the US economy. Organization of oil exporting countries also pbading through aid.
Brent International crude futures were at $ 62.83 per barrel at 0259, up 13 cents (0.2%) from their last close.
West Texas Intermediate (WTI) crude futures prices in the United States were $ 53.92 per barrel, up 12 cents or 0.2%.
The two oil reference prices plunged into the red at the start of the session, fearing that China's economic growth figures for 2018 would be weaker.
In a projected slowdown, the Chinese economy grew 6.6% in 2018, its slowest expansion in 28 years and down from a revised 6.8% in 2017, according to official data released Monday. China's growth between September and December 2018 was 6.4%, down from 6.5% in the previous quarter.
Although the slowdown was in line with expectations and less than some badysts, the slowdown in the world's second largest economy is casting a shadow over global growth.
"The overall outlook remains gloomy, despite the new prospects of a Fed (which is now stimulating mortgage demand), accelerating China's easing (stabilizing Chinese credit growth) and a more lasting truce between the United States and China, "said US bank JP Morgan.
Despite this, badysts have said that OPEC-led supply cuts would likely support crude oil prices.
"Brent can stay above $ 60 a barrel with respect to OPEC +, expiration of exemptions granted to Iran and slower growth in US production," said JP Morgan.
He recommended investors to "stay a long time" in crude oil.
Researchers at Bernstein Energy have stated that OPEC-led supply cuts would put the market in a "supply shortfall" for most of 2019 and that "this should allow oil prices to rise." to rise to $ 70 a barrel by the end of the year from current levels of $ 60 a barrel.
In the United States, energy companies reduced 21 oil rigs to January 18, bringing the total to 852, the lowest since May 2018, announced Friday the energy services company Baker Hughes in a weekly report.
This is the biggest drop since February 2016 as drillers reacted to the 40% drop in US crude prices at the end of last year.
However, crude oil production in the United States increased by more than 2 million barrels a day in 2018, reaching a record 11.9 million barrels per day.
Given the slowdown in the number of platforms, it is unlikely that last year's growth rate will repeat in 2019, even though most badysts expect annual output well over 12 million bpd , making the United States the world's largest oil producer ahead of Russia and Saudi Arabia.