Oil price rises as Saudi producers see producers stick to ongoing supply cuts By Reuters

By Henning Gloystein

SINGAPORE (Reuters) – Oil prices rose on Monday after Saudi Arabia told OPEC producer clubs and Russia to limit their supplies to current levels, easing withdrawal by the states. United States of the tariff threat against Mexico, thus removing a cloud on the global economy.

Despite Monday's rises, traders said worries about the health of the global economy and its impact on fuel demand still weighed on the sentiment of the oil market.

The first day futures, the international benchmark for oil prices, were at $ 63.61 at 4:11 GMT, or 32 cents, or 0.5%, higher than Friday's close.

WTI (West Texas Intermediate) futures in the United States were $ 54.32 per barrel, 33 cents or 0.6%.

Traders said crude prices were rising as a result of statements by the largest producer of OPEC, Saudi Arabia, who said Friday that the group was about to agree on the price of oil. 39, an extension of the supply cuts.

"Brent futures continue to rise … after the Saudi energy minister has expressed confidence that OPEC + producers will extend their production reduction program until the end of the year. in the second half of 2019, "said Han Tan, an badyst at FXTM, a futures broker.

The Organization of Petroleum Exporting Countries (OPEC) and some non-members, including Russia, collectively referred to as "OPEC +", have been holding supplies since the beginning of the year to support prices.

Stephen Innes, Managing Partner at Vanguard Markets, said the strengthening of the stock markets also supported the oil futures.

"With the Mexican stalemate averted and the damaging shock waves of this G-20 meeting this weekend, oil could evolve favorably, as WTI and Brent will continue to follow the changing risk environment. higher, "said Innes.

Stock markets rose on Monday following the conclusion of an agreement between the United States and Mexico on the fight against illegal migrations from Central America at the end of last week that removed the threat of US tariffs on goods imported from Mexico.

But badysts said the health of the global economy remains a concern, with the United States and China still struggling with a trade war.

"The slowdown in global demand seems to dominate in the collective spirit of the markets, as the spillover from increased trade tensions continues to be felt in the global economy," said Tan of FXTM.

"The sustainability of the recent oil rally could be determined by the prospects of several key industry organizations forecast this week that lower global demand forecasts could prompt traders to continue cutting back on oil." , he added.

Customs data revealed Monday that Chinese imports fell to about 40.23 million tons (9.47 million barrels per day), a record high of 43.73 million tons in April, the world's leading importer of goods Iranian stifled by tightening US sanctions on this country.

More data needs to be released this week.

Major oil tanker BP (LON 🙂 will release its statistical report on global energy markets on Tuesday, while China is expected to release its monthly commodity data on Friday.