May Brent crude oil futures were up 83 cents at $68.65 a barrel by 1232 GMT, set for a gain of nearly 28% in the first quarter, Reuters reported, adding that the more active June contract was up 89 cents at $67.99 a barrel. US West Texas Intermediate (WTI) futures were at $60.44 per barrel, up 1.14 cents, and on track for a rise of more than 33% over the January-March period. For the two futures contracts, January-March 2019 is the best-performing quarter since the second quarter of 2009, when both gained about 40%, according to the news agency.
Justin Urquhart Stewart, director at Seven Investment Management in London, told New Europe by phone on 29 March that oil production cuts from OPEC and non-OPEC group of producers led by Russia have been one of the reasons for the increased oil prices. But he warned that the global economy is slowing, leading to a lower demand for oil.
“We have what looks like a global slowdown. Demand is likely to weaken and Saudi cut production will have an impact. Venezuela one has been carrying on and on there is nothing new there. But I think the bigger picture is really if we get a decision on the Chinese-American trade issues. They’re indirectly linked but the mere agreement on that, you will see that reflected in the oil price as well soon after because for the increased demand for power,” Urquhart Stewart said.
Full article available: https://www.neweurope.eu/article/opec-oil-production-cuts-possible-us-china-trade-deal-boost-oil-prices/