Commodities News

Oil Edges Higher On Expectations of More OPEC Production Cuts

Oil inched higher on Friday as expectations of more OPEC output cuts offered some support, although concerns over the U.S.-China trade war kept a cap on gains.

Brent crude oil futures were at $57.54 a barrel by 0646 GMT, up 16 cents, i.e., 0.3%, from their earlier settlement.

U.S. West Texas Intermediate futures were at $52.68 each barrel, up 14 cents, i.e., 0.3%, from their final close.

Both contracts jumped over 2% on Thursday to recover from January lows, buoyed by reports that Saudi Arabia, the world’s largest oil exporter, had called different producers to discuss the latest fall in crude costs.

Oil prices have nonetheless lost over 20% from heights reached in April, putting them in the lower territory.

Global financial markets are rocked over the past week after U.S. President Donald Trump said he would force 10% tariffs on more Chinese products starting September 1 and as a decline in the Chinese yuan sparked fears of a currency conflict.

Earlier, a report came that stated Washington was holding off a decision about permits for U.S. corporations to do business with Huawei Technologies.

In the meantime, Saudi Arabia, de facto chief of the Organization of Petroleum Exporting Countries (OPEC), plans to keep its crude oil exports below 7 million barrels per day (bpd) in August and September to get the market back to stability and help take in global oil inventories.

The United Arab Emirates (UAE) will proceed to assist actions in offsetting the oil industry, the nation’s energy minister Suhail al-Mazrouei wrote on Twitter on Thursday.

Danielle Hollman

By Danielle Hollman

Danielle is a Market expert with vast experience in commodities. She also has expertise in marketing and international business communication in her career portfolio. She has worked with several entrepreneurs, financial services firms, and media houses. Danielle joined FBI Market News in 2018. Now, she is leading the Commodity column.

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