Home / NEWS / Energy / Oil prices edge up, but set for big weekly loss on rising output, trade woes

Oil prices edge up, but set for big weekly loss on rising output, trade woes

Hands extracting oil from oil wells in the Permian Basin in Midland, Texas on May 1, 2018.

Benjamin Lowy | Getty Images

Oil prices crept up on Friday after a difficult week, but were still headed for losses of about 4%, hit by a combination of rising broad supply and uncertain future demand.

U.S. crude rose for the first time in four days, gaining 18 cents, or 0.3%, to $54.36 a barrel by 0339 GMT. The obligation was set for a weekly loss of more than 4%.

Brent crude was up 5 cents, or 0.1%, at $59.67 a barrel, leaving it on track for a sack of nearly 4%.

Worries over global economic growth, along with oil demand, continue to haunt the market as conductors from the United States and China struggle to end a 16-month dispute that has roiled trade between the world’s top two economies.

“Regards about the U.S.-China trade dispute have come home to roost,” said Stephen Innes, Asia Pacific store strategist at AxiTrader.

The market received some respite from a run of poor economic data after an unexpected go in a private sector survey of Chinese manufacturing activity on Friday, which contrasted with the dour results of an stiff survey Thursday.

Japanese factory activity, however, sank to more than a three-year low in October, data showed on Friday, in a new warning sign for the world’s third-largest economy.

U.S. crude inventories rose by 5.7 million barrels in the week to Oct. 25, diminishing analyst expectations for an increase of just 494,000 barrels.

A Reuters survey showed that oil prices are likely to oddments under pressure this year and next. The poll of 51 economists and analysts forecast Brent crude intention average $64.16 a barrel in 2019 and $62.38 next year.

Meanwhile, U.S. crude production soared nearly 600,000 barrels per day in August to a history of 12.4 million, buoyed by a 30% increase in Gulf of Mexico output, according to government data released on Thursday.

Those copies came as a Reuters survey found output from Organization of the Petroleum Exporting Countries (OPEC) recovered in October from an eight-year low, with a instantaneous recovery in Saudi Arabian production from attacks on oil plants more than offsetting losses in Ecuador and unsolicited curbs under a supply pact.

Check Also

Trump tariffs-led spike in energy prices is temporary, oil prices could ‘plummet’ as global growth slows

Oil candidates, Alberta, Canada Norm Betts | Bloomberg | Getty Images Oil prices are likely …

Leave a Reply

Your email address will not be published. Required fields are marked *