• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 27 mins Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 1 hour The World is Facing a Solar Panel Waste Problem
  • 9 hours Rational analysis of CV19 from Harvard Medical School
  • 9 hours Biden admits he has been tested for Cognitive Decline several times. Didn't show any proof of test results.
  • 5 hours The Core Issue Of US Chaos..Finally disclosed
  • 10 hours Trump Suggests Delaying Election Amid Fraud Claims
  • 8 hours Open letter from Politico about US-russian relations
  • 9 hours China's impending economic meltdown
  • 10 hours Why Oil could hit $100
  • 10 hours Brent above $45. Holding breath for $50??
  • 5 hours Pompeo upsets China; oil & gas prices to fall
  • 8 hours Russia Trying To Steal COVID-19 Vaccine Data, Say UK, U.S. and Canada
  • 1 day End Game For Oil? OPEC Prepares For An Age Of Dwindling Demand
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Premium Content

Bullish News Underpins Oil

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading higher on Friday and are in a position to close higher for the week. Both futures contracts are also trading at their highest levels since December 19.

The markets are being boosted by optimism over the announcement of higher-level trade talks between the United States and China on January 7-8. Traders said the markets are also being underpinned by the start of the OPEC-led supply cuts on January 1.

A stronger-than-expected U.S. Non-Farm Payrolls report is also driving stocks higher, which is helping to generate further support for risky commodities like crude oil.

Higher Level Trade Talks

Prices firmed on Friday after China’s commerce ministry said that it would hold vice-ministerial level trade talks with U.S. counterparts in Beijing on January 7-8. Given the recent string of weak economic data from both countries, it seems there would be a sense of urgency to reach an agreement before there is a global recession.

OPEC Production Cuts

OPEC and its allies including Russia, agreed in December to reduce output by 1.2 million barrels per day (bpd) in 2019 versus October 2018 levels. This is supposed to trim the excessive global supply and stabilize prices. However, it’s going to take time. Traders feel that if OPEC can stay true to the deal, the global supply glut could be cleaned up within 3 to 4 months.

Reuters reported on Thursday…





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News