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Brent above $65: Oil prices hit 2019 highs amid OPEC-led supply cuts

Brent pushed above $65 per barrel for the first time in 2019, before edging back to $64.91 a barrel by 0143 GMT. That was still 0.5 percent above the last close.

Reuters  |  SINGAPORE 

OMC, oil
Oil prices hit $65 today

prices rallied on Friday, with Brent crude futures hitting fresh 2019 highs amid U.S. sanctions against and and supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC).

Brent pushed above $65 per barrel for the first time in 2019, before edging back to $64.91 a barrel by 0143 GMT. That was still 0.5 percent above the last close.

The international benchmark for prices is at a near 3-month high and set for a 4.5 percent gain for the week.

U.S. Intermediate (WTI) crude futures were at $54.74 per barrel, up 33 cents, or 0.6 percent, from their last settlement.

and some non-affiliated suppliers including are withholding supply in order to tighten the market and prop up prices.

The group known as OPEC+ has agreed to cut crude output by a joint 1.2 million barrels per day (bpd). Top exporter said it would cut even more in March than the deal called for.

has cut its production by 80,000-90,000 barrels per day from its level in October, Moscow's reference level for its cuts, the country's minister said.

of Merrill Lynch said in a note that "Brent should average $70 per barrel in 2019, helped by voluntary (Saudi, Kuwait, UEA) and involuntary (Venezuela, Iran) declines in supply."

The U.S. added that it expects "a 2.5 million barrels per day drop in supply from 4Q18 into 4Q19."

Standing against the supply cuts is soaring U.S. crude production, which rose by more than 2 million bpd last year, to 11.9 million bpd, making the world's biggest

Most analysts expect U.S. output to rise past 12 million bpd soon, and perhaps even hit 13 million bpd by the end of the year.

 

 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, February 15 2019. 09:20 IST
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