Commodities

Oil extends gains, Brent hits 2019 highs

2019-02-15 13:58:07 GMT (Economies.com)

Oil rose in European trade with Brent hitting fresh 2019 highs as OPEC and Russia comply with their deal to cut global output. 

 

As of 07:45 GMT, US crude rose to $55.10 a barrel, with a session-high at $55.34. 

 

Brent rose to $64.95 a barrel, with an intraday low at $64.67, and the highest since November 20 at $65.08. 

 

US crude rose 1.7% yesterday, while Brent added 1.5% as risk appetite improved on hopes for a US-China trade agreement. 

 

Now markets look forward to US-China trade talks in Beijing, with President Xi Jinping expected to meet the US delegation to hammer out hanging issues. 

 

US President Donald Trump opened the door for extending the truce beyond March to give another chance for an agreement. 

 

White House officials asserted in recent statements that Trump intends to meet his Chinese counterpart soon.

 

OPEC President Suhail Al Mazroui asserted the importance of reaching balance in the oil market by the end of the current quarter, adding he expects oil prices to steady as well in this quarter. 

 

Otherwise, Venezuelan output was forced down by recent US sanctions and amid tensions and political turmoil following recent elections, with even more output drops expected soon. 

 

Saudi oil minister Khalid Al Falih said to Financial Times that Saudi Arabia plans to produce 9.8 million bpd in March, and for exports to fall to 6.9 million bpd. 

 

That means a 500 thousand bpd cut from the levels promised by Saudi Arabia in the deal to cut global output with OPEC. 

 

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