- Trade Deal, OPEC Cuts Boost Oil prices
- China and the United States Close to a Deal
Oil prices rose on Monday after a survey by Reuters showed OPEC supply fell to a four year low in February and reports that the United States and China are close to a deal.
Brent crude oil rose by 0.3 per cent to $65.25 a barrel at 07.13 GMT. While U.S. West Texas Intermediate (WTI) crude oil climbed 0.3 per cent to $55.94 a barrel.
The uncertainty surrounding OPEC nations is aiding oil prices as Nigeria announced a 150,000 barrels per day drop in its crude supply on Monday following signs the U.S crude supply may drop below 12 million barrels a day.
“OPEC exports are off by over 1.5 million barrels per day (bpd) since November,” Barclays bank said in a note released on Sunday.
“The supply picture looks generally tighter this year,” said energy analysts at Fitch Solutions in a note on Monday, adding they expected Brent to average 73 dollars per barrel in 2019.
Another contributing factor to the surge in oil demand is the report that the U.S. and China, the largest importer of global crude oil, are about to put an end to their trade dispute.
Experts believe a positive trade agreement would boost global oil demand and growth.
“Oil prices are taking their cues from a flurry of buying on global stock markets as the U.S. and China inch closer to ending their trade dispute,” analysts at PVM Oil Associates Ltd. said in a note to clients.