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© Reuters. FILE PHOTOPumpjacks are seen against the setting sun on the Daqing oilfield in Heilongjiang
By Aaron Sheldrick
TOKYO (Reuters) – The price of oil dropped on Friday from $ 70 at the helm after a brief rise above that level in the previous session, affected by supply concerns and worries about oil prices. to the progress of American-Chinese trade negotiations.
The international benchmark for Brent futures dropped 26 cents, or 0.4%, to $ 69.14 per barrel at 2:29 GMT, after touching $ 70.03 at the same time. the previous session, its highest level since 12 November.
WTI (West Texas Intermediate) crude in the United States is down 1 cent to $ 62.09. The contract fell 36 cents in the previous session, after reaching $ 62.99 on Wednesday, its highest level since November.
Still, Brent is heading for a second week of gains, while WTI is on track for a fifth consecutive weekly gain.
Oil prices have risen this year after the Organization of Petroleum Exporting Countries and producing allies such as Russia, known as OPEC +, have agreed to cut their output by 1.2 percent. million barrels a day to avoid an increase in supply.
Prices are now well balanced, said Abhishek Kumar, senior energy badyst at Interfax Energy in London.
"The OPEC + group has so far complied with its production reduction agreement, which, combined with positive economic data from the United States and China, supports oil prices," he said. Kumar said.
"Nevertheless, market players are concerned that the continued rise in oil production and US exports will jeopardize much of OPEC's efforts," he said.
Oil inventories rose unexpectedly last week, as imports rose and production reached a new record, the Energy Information Administration announced on Wednesday. [EIA/S]
Brent gained nearly 30% this year, while WTI rose nearly 40%, as a result of OPEC production cuts, as well as US sanctions against Iranian and Venezuelan crude.
(Chart: supply of oil relative to demand – https://tmsnrt.rs/2CXO9gl)
US President Donald Trump said Thursday that a trade deal with China was about to come to fruition and could be concluded in about four weeks, but he said blocking points included theft and theft. intellectual property.
"A summit in April seems unlikely despite comments from both sides on the state of play of the negotiations," said Alfonso Esparza, senior market badyst at OANDA, in a note.
"After much discussion, nothing has been proven yet, putting downward pressure on energy demand again," Esparza said.
Among the other bearish economic indicators recorded this week is the drop in orders at German factories, which fell in February from the highest rate in more than two years.
Orders were penalized by a drop in foreign demand, worsening worries about the weakness of Europe 's largest economy at the start of the year.
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