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© Reuters. FILE PHOTO: Labyrinth of crude oil pipes and gates is described during a visit by the Ministry of Energy to the Freeport Strategic Petroleum Reserve
By Henning Gloystein
SINGAPORE (Reuters) – Prices fell Tuesday against the peaks of 2019, knowing that economic growth could dampen demand this year, although supply cuts attributable to the OPEC producers' cartel have led to a relative tension in the markets.
The Brent International crude oil futures contract stands at $ 66.08 a barrel at 0220 GMT, down 42 cents, or 0.6% from their last close, but not too far from the 2019 peak of $ 66.83 per barrel from the previous session.
The futures price of the WTI (West Texas Intermediate) US crude was $ 55.71 per barrel. Although this is up 12 cents from their last settlement, it was lower than the $ 56.33 peak in 2019 the previous day.
Traders said the slight downward correction was due to concerns about the health of the global economy this year.
Bank of America Merrill Lynch (NYSE 🙂 said in a note that the Sino-US trade dispute was hurting global economic growth.
"It is essential to tackle global trade tensions to improve the economic outlook," the group said in a note.
China's Deputy Prime Minister and Chief Negotiator Liu He and US Trade Representative Robert Lighthizer led a series of trade talks this week in Washington.
Given the economic outlook and the supply and demand balances, the bank said it expects Brent prices to average between $ 50 and $ 70 per barrel, "around $ 60.
Despite some cautious trade, global oil markets remain relatively tight due to supply cuts by the Organization of the Petroleum Exporting Countries (OPEC), dominated by the Middle East, the main exporter of crude being Saudi Arabia.
Saudi crude oil exports declined in the first half of February, with starts rising to 6.204 million barrels per day (bpd), a decrease of 1.341 million barrels per day and 0.91 million barrels a day. million barrels a day, announced the intelligence company Kpler.
US sanctions against oil exporters, Iran and Venezuela, provide further support for the oil markets.
Venezuela is a major supplier of crude oil to US refineries, while Iran is a key exporter of major demand centers in Asia, including China and India.
(Report by Henning Gloystein to SINGAPORE and Colin Packham to SYDNEY, edited by Joseph Radford and Kenneth Maxwell)
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