U.S. West Texas Intermediate crude oil futures proved to be resilient this week, rebounding from a steep sell-off early in the week to post a new high for the year on Friday. The early in the week weakness was fueled by comments from President Trump, while the rally late in the week was helped stronger-than-expected U.S. economic data.
The lack of fresh developments over U.S.-China trade relations weighed on prices at times as well as increased U.S. production. However, both concerns were offset by the OPEC-led production cuts which continued to tighten the global supply, and an unexpected drop in U.S. crude oil inventories.
“Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike – fragile!” Trump said in an early morning tweet.
Trump’s tweet was in response to the OPEC-led production cuts which began on January 1 and have been successful enough to trim the global supply glut. OPEC, along with its major ally Russia, meet in mid-April to review the deal, which is scheduled to last through the first six months of 2019.
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