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Oil futures advanced on Friday, pushing prices up by more than 5% for the week due to signs of tighter global supply and progress in US-China trade negotiations .
The market was optimistic about the progress of this week's trade talks between the US and China, which could affect the energy demand of the world's two largest economies.
The United States and China have made "significant progress for the current phase" of their trade talks, Xinhua said Friday, following a meeting between Chinese President Xi Jinping and US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in Beijing.
US Benchmark: West West Texas Intermediate Crude Oil
CLH9, + 2.54%
rose $ 1.18, or 2.2%, to settle at $ 55.59 on the New York Mercantile Exchange.
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April Brent
LCOJ9, + 2.82%
added $ 1.68, or 2.6%, to $ 66.25 on the ICE Futures Europe exchange.
According to the Dow Jones Market Data, WTI and Brent have both been awarded the highest price for a first month contract since November 19th. Since the start of the week, WTI prices have risen 5.4%, while Brent has jumped 6.7%.
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The Organization of the Petroleum Exporting Countries announced earlier this week that its crude oil output had decreased by nearly 800,000 barrels a day in January, to an average of 30.81 million barrels per barrel. day, the essential cuts from Saudi Arabia. The International Energy Agency's monthly oil market report, also released this week, indicates that the Saudis reduced production by 400,000 barrels a day last month, to an average of 10.24 million barrels a day. barrels a day.
The de facto leader of Saudi Arabia, OPEC, has committed earlier this week to further reduce production in the coming months, according to the Financial Times (Paywall), citing the minister Khalid al-Falih, who announced that the country would reduce 500,000 bar to 9.8 million barrels a day in March.
"The market is currently reacting solely to price-friendly information, such as Saudi Arabia's announcement of more pronounced production cuts," Commerzbank analysts said in a note.
These movements coincide with the probable unintentional declines of Iran and Venezuela, which make it increasingly difficult for the American shale or any other producer to prevent a sharp decline in world supply as demand approaches , analysts said this week. The Energy Information Administration will release Tuesday's monthly report on drilling productivity, which will include forecasts for shale production in the United States in March.
Friday, Baker Hughes
BHGE, + 0.74%
reported that the number of oil rigs in the United States, a measure of closely watched activity in the sector, climbed for a second consecutive week, up from 3 to 857 this week.
Energy Intelligence reported Thursday, citing sources familiar with the matter, that Saudi Aramco stopped oil production this week at Safaniyah, the largest offshore oil field in the world, after a tweet from Amena Bakr, Senior Correspondent at the News and Research Service Provider. The oil field has the capacity to produce more than 1 million barrels of oil a day.
Saudi Aramco told Reuters on Friday that all its facilities and operations, including Safaniyah, are safe and normal. A source close to the case had previously told the news agency that the oil field was partially closed after cutting a main electrical cable by the anchor of the ship.
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RBH9, + 4.36%
up 4.3% to $ 1.573 per gallon, up 8.8% over the week and March
HOH9, + 2.53%
increased 2.5% to $ 2.02 per gallon, up about 5.9% for the week. Both products also recorded the highest contract settlements at the beginning of the month since November Friday.
Mars natural gas
NGH19, + 2.29%
rose 2% to 2.625 dollars per million British thermal units, up 1.6% for the week.
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