Oil prices rebound on Saudi supply reassurances

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To prevent oversupply and prop up the market, Opec+, which includes most members of Opec, plus a number of non-Opec producers led by Russian Federation, has since January 1 of this year, been holding back 1.2 million barrels per day from the market.

Global markets have skidded in recent weeks on concerns the economy could stall amid rising trade tensions between the United States and China, the world's two largest economies and biggest energy consumers.

South Korea's economy shrank by 0.4% in the first quarter while core inflation slowed to a near 20-year low in May, data showed on Tuesday, pointing to a further economic slowdown in Asia.

Analysts said the fall in crude oil futures was in tune with a weak trend in global market where it slipped on rising fears of a global economic slowdown, fuelled by intensifying tensions between the USA and China. "Last week there was an announcement that tariffs on Mexican goods will be introduced, India was excluded from the list of developing countries, and also the European Commissioner for Trade warned that duties on a number of European goods will be imposed in July", the expert.

U.S. West Texas Intermediate (WTI) crude futures were at $52.80 per barrel, down 45 cents, or 0.85%, from their last settlement.

Front-month Brent crude futures were at $62.40 at 1150 GMT, up 41 cents, or 0.66%, above Friday's close.

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Markets now look forward to the official U.S. government weekly crude stockpiles data due to be published by the Energy Information Administration (EIA) at 1430 GMT for fresh trading impetus.

Saudi Energy Minister Khalid al-Falih said Monday a consensus was emerging among Opec+ producers to continue working "to sustain market stability" in the second half of the year, Reuters reported.

OPEC produces some 40 percent of the global demand for crude oil. "We have previously stated our commitment to do whatever it takes to stabilize markets and we have delivered on those promises". "Nevertheless, the escalating trade war of the United States with China, the European Union and Mexico will cap price gains in the run-up to the OPEC+ meeting".

Russia's average daily oil output has nonetheless dropped to a three year-low after contaminated crude clogged its main export route.

"Slowing economic activity now threatens to derail our base case of robust cyclical (oil) demand growth", said Bank of America Merrill Lynch in a note.