Oil rises on China’s plan to boost US crude imports, OPEC+ compliance

By Administrator_India

Capital Sands

Oil prices settled higher on Monday, as OPEC+ producers almost fully complied in July with their global production cut accord, and after U.S. officials said China is in compliance with the first phase of the two nations’ trade deal.

Brent crude settled up 57 cents, or 1.3%, to $45.87 a barrel, and U.S. West Texas Intermediate crude was up 88 cents, or 2.1 %, to $42.41 a barrel.

Compliance with OPEC+ oil output cuts is seen at around 97% in July, two OPEC+ sources told Reuters. The oil-producing nations have been cutting output by record levels to curb supply and reduce worldwide inventories.

China is living up to its end of the trade deal the two parties signed in January, U.S. President Donald Trump said on Monday, even though the nation has fallen short so far of promised purchases of U.S. products.

Chinese state-owned oil firms have tentatively booked tankers to transport at least 20 million barrels of U.S. crude for August and September.

Investors are waiting on Wednesday’s ministerial OPEC+ committee, known as the JMMC, that will review compliance with the global oil supply reduction pact, although no change in the agreement is expected.

In August, the OPEC eased its agreed cuts to 7.7 million barrels per day  from 9.7 million bpd previously. Later-dated Brent futures contracts suggest traders see inventories remaining high in coming months due to weakened demand.

Last week the U.S. Energy Information Administration adjusted global oil demand downward, suggesting a smaller than previously expected reduction in global inventories.

Related Posts
Oil prices fall amid worries over new coronavirus strain
Brent oil rises on weaker dollar though IEA cuts demand outlook

BY Administrator_India Capital Sands Oil prices slid in early trade on Monday as a fast-spreading new coronavirus strain in the Read more

OPEC+ oil output boost to leave market in precarious balance, IEA says
Brent oil rises on weaker dollar though IEA cuts demand outlook

By Administrator_ India Capital Sands The outlook for oil “remains fragile” as the pandemic depresses demand, and OPEC’s plans to increase supply Read more

Oil Down as Uncertainty Over OPEC Production Cuts Grows
Oil Down as Uncertainty Over OPEC Production Cuts Grows

By Administrator_India Capital Sands Oil was down on Friday, giving up its gains from the previous session over uncertainty as Read more

Oil Up, Finishes August Strong Despite Oversupply Fears
Oil rally boosted by surprise fall in U.S. stocks

By Administrator_India Capital Sands Brent oil futures rose 0.61% to $46.09 by 12:17 AM ET (5:17 AM GMT) and WTI futures were up Read more

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x