Oil prices on shaky ground amid global financial market worries

Oil prices on shaky ground amid global financial market worries

The firm said it now expects Brent crude to average $68.50 per barrel in 2019, down from its previous estimate of $78.50. But amid mounting global uncertainty on everything from trade and monetary policy to politics, that forecast is far from consensus.

“Firstly, we'll get some (price) stability, even if oil is weighed down by bearish equities.

No oil output cut decision was announced on Thursday after hours of a meeting of the Organisation of the Petroleum Exporting Countries (OPEC).

Oil prices fell on Monday after surging Friday on news that OPEC and non-OPEC members had reached an agreement to cut crude production by 1.2 million barrels per day from January.

OPEC cuts: sufficient or not?

“Friday's agreement was a seemingly good one, or maybe we should say the best one under the current circumstances, ” Tamas Varga, a strategist with PVM Oil Associates, said.

It's likely the combination of the two that prompted selling - not least concerns over growth stemming from the U.S. U.S. West Texas Intermediate (WTI) crude futures were at $52.63 per barrel, up 2 cents, held back as the booming U.S. oil industry is not taking part in the announced cuts. This would hurt crude oil demand and contribute to views that the market is oversupplied, traders have said.

Oil producers who agreed last week to trim production to boost prices will meet in April to review the impact and sign a long-term pact, the UAE minister said on Wednesday.

Citi, meanwhile, sees oil going nowhere in 2019 and staying at $60 a barrel.

Saudi Arabia told Opec it pumped at a record rate of 11.093 million bpd.

US based Capital Economics, meanwhile, sees an average of $63 a barrel over the course of 2019.

The Organisation of the Petroleum Exporting Countries (OPEC) expects demand for its oil to fall next year, as global supplies, particularly in USA shale continue to rise.

Brent for February delivery climbed 23 cents to settle at $60.20 a barrel on London's ICE Futures Europe exchange.

Organisation of the Petroleum Exporting Countries (OPEC) and its allies, on December 7, chose to curtail oil production by 1.2 million barrels per day for a period of six months starting from January 2019 to reduce the current surplus and provide a balance to global oil markets.

In exports, Saudi Arabia's hit their highest in 20 months in September, according to data by the Joint Organisations Data Initiative (JODI) database, which collects self-reported oil figures from 114 countries.

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