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Oil prices rebounded sharply on Friday after yesterday's sharp losses and were on track for a 2.3% weekly gain as investors waited for strong global demand, narrowing Iranian crude exports and low oil inventories. American oil.
Light crude oil for October delivery rose 1.1% to $ 69.35 a barrel on the New York Mercantile Exchange. Brent, the world benchmark, rose 0.3% to 78.42 dollars a barrel.
"The latest oil market report from the IEA was released yesterday and shows a rather bullish image, as indicated by the title of its market overview:" narrow the path, "said JBC Energy. "World demand for oil has risen by about 100,000 barrels a day over the three years, 2017, 2018 and 2019."
These strong demand forecasts point to a possible tightening of the global supply, in part because US oil sanctions against Iran will continue to have a bigger effect in the coming weeks, Gene said. McGillian, vice president of research at Tradition Energy.
The rise in oil prices Friday, McGillian said, is a result of "combined demand that will improve next year and the reduction in Iranian exports, plus the [U.S.] Inventory report on US crude inventories at three-and-a-half years at the lowest.
The Energy Information Administration reported Wednesday that US commercial crude oil inventories fell last week to 396 million barrels, the lowest since 2015.
PHOTO FILE A worker inspects a jack in an oil field in Tacheng, Xinjiang Uyghur Autonomous Region, China, June 27, 2018. REUTERS / Stringer / File Photo CHINA OUT.
Photo:
strina network China / Reuters
Investors have also seen reports this week that suggest a possible stalemate in US oil production growth and anticipate
Baker Hughes
The counting report could reinforce this point of view. The number of active oil rigs in the United States stands at 860 last week and has been between 858 and 869 since May, as pipeline capacity shortages are forcing many producers to slow down their drilling plans.
However, Alfonso Esparza, a senior analyst with the Oanda currency trading group, said oil prices are facing headwinds in the coming days and weeks, especially as the dollar starts to rebound after a dip of almost six weeks. The price of oil is expressed in dollars, and as a result, oil prices often move in the opposite direction to the US dollar.
"Geopolitical factors such as trade tensions between the United States and China will continue to put downward pressure on crude prices, as higher protectionist measures tend to slow world growth," he said. Esparza.
President Donald Trump appeared Thursday to torpedo any indication. Trade talks between the United States and China have recently improved. He said in a message on Twitter that "we have no pressure to reach an agreement with China, they are under pressure to reach an agreement with us."
These comments helped the WSJ Dollar Index rise 0.3% on Friday.
In addition, possibly offsetting the contraction of Iranian exports, OPEC and its production allies, including Russia, decided in late June to boost crude production after more than a year of slowing production.
"The oil scenario remains mixed as investors try to set different prices," said Carlo Alberto de Casa, Chief Analyst at ActivTrades.
Among refined products, gasoline futures for October delivery decreased 0.5% to $ 1.9331 per gallon. The diesel futures were stable at $ 2.249 a gallon.
Write to Dan Molinski at [email protected] and Christopher Alessi at [email protected]
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