Friday oil prices lasted their recovery, marking the best two-day profit since April, as Saudi Arabian energy minister assured the markets that the OPEC-led cutting agreement between the OPEC and the Russia-led allies will lasted, though in tweaked form.
Saudi Energy Minister Khalid Al-Falih at the Petersburg International Economic Forum after discussions with Russia said he did not think the issue is all whether it will last or not, but a rollover is almost in the bag for OPEC.
The question is to calibrate with no OPEC if there is a need for a first-half adjustment!
I forgive however that he felt deep downsides were unnecessary and that oil producers should assess the impact of sanctions on Iran and Venezuela.
Unprocessed earnings in New York are traded at 79 cents or 1.5 percent at $ 53.38 a barrel of 7:22 am, while Brent’s gross futures, the benchmark for oil prices outside the US, traded 99 cents or 1.6 percent, to $ 62.66.
Despite recovery, prices have fallen by 4% this week, as fears of a slowdown in demand have increased, underscored by another sharp and unexpected US gross reserves.
Russian Energy Minister Alexander Novak, speaking at the same event as al-Falih, said demand growth could slow down below 1 million barrels a day this year.
Foreign Investment Analyst Barani Krishnan agreed that the timetable since the week of May 12 is anticipated for fear of a possible world recession from US trade warfare with China and Mexico.
“Adding to the bearish chart was a deterioration of demand for supply after US oil production reached record high and unprocessed stocks grew as gasoline consumption weakened in what should be a strong run for driving,” he added. it.
The investment management firm, Neuberger Berman, warned that, despite recovery over the last 48 hours, “volatility will likely continue to follow us as the economy and markets fit into a more modest growth prospect.”
In other energy trade, gasoline revenue grew 1.3% to $ 1.7295 a gallon by 7:23 ET, while heating oil traded 1.3% to $ 1.8120 in gallons.
Lastly, natural gas revenues advanced 0.9% to $ 2,334 per million British thermal units./Investing.com