• 5 minutes China Faces Economic Collapse
  • 8 minutes ZeroHedge: Oil And Gas Bankruptcies To Accelerate As $137 Billion Debt Matures Over Next Two Years
  • 11 minutes Trump Will Win In 2020
  • 14 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 15 mins The Belt & Road Initiative: A Wolf in Sheep's Clothing?
  • 1 hour Democrats and Gun Views
  • 2 hours How OPEC and OECD play their role in setting oil price in light of Iranian oil sanction ?? Does the world agree with Iran's oil sanctions ???
  • 3 hours Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 3 hours Cost of oil
  • 9 hours Swedish Behavioral Scientist Suggests Eating Humans to ‘Save the Planet’ from Climate Change. What could possibly go wrong?
  • 10 hours Trump Orders Biofuel Boost
  • 14 hours Buy Oil Monday?
  • 5 hours Iran says tanker oil sold at sea, buyer sets destination
  • 16 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 11 hours “Who’s going to bail out the Central Banks?”
  • 13 hours Used Thin Film Solar Panels at 15 Cents per Watt
  • 13 hours Green New Deal Preview in Texas Town
Alt Text

Is OPEC’s No.2 Finally Cutting Production?

Since OPEC started restricting oil…

Alt Text

Can Argentina's Shale Boom Survive?

Argentina’s shale boom is falling…

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
Download on the App Store Get it on Google Play