Oil rises for a second day as Saudi Arabia pushes supply cut
Tue Dec 03 2019
Lucy Harlow (3354 articles)

Oil rises for a second day as Saudi Arabia pushes supply cut

 Oil prices rose for a second day on Tuesday as Saudi Arabia, the de facto OPEC leader and the world’s biggest oil exporter, is pushing producers to deepen a supply cut agreement when suppliers meet this week, potentially lowering supply in 2020.

Brent futures LCOv1 rose 19 cents, or 0.3%, to $ 61.11 a barrel by 0218 GMT, after gaining 0.7% on Monday.

U.S. West Texas Intermediate crude CLc1 was up by 21 cents, or 0.4%, at $ 56.17 a barrel. The contract rose 1.4% on Monday.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, are discussing a plan to increase its existing 1.2 million barrels per day (bpd) supply cut by 400,000 bpd and extend the pact until June, two sources familiar with the matter said.

Saudi Arabia is pushing the plan to deliver a positive surprise to the market before the listing of state-owned Saudi Aramco, the sources said.

OPEC ministers will meet in Vienna on Thursday and the wider OPEC+ group will gather on Friday.

Concerns about the inability of the United States and China, the world’s two biggest oil users, to come to a preliminary agreement to resolve their 17-month trade dispute also weighed on oil prices, along with discouraging U.S. economic data.

A senior adviser to President Donald Trump said on Monday a U.S.-China trade deal was still possible before the end of the year, adding that the first phase of the agreement was being put to paper, but the talks have been dragging on for weeks now.

U.S. factory activity contracted in November, while Trump’s unexpected announcement of plans to reimpose tariffs on steel and aluminum from Argentina and Brazil is also a dampener on prices.

Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe

Discussion

Rules of Discussion on Live Index

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.