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Oil rises; lifted by OPEC cuts, steadying stock market

Reuters  |  NEW YORK 

By Stephanie Kelly

NEW YORK (Reuters) - prices edged higher on Monday, rebounding further from 1-1/2-year lows reached in December, on support from OPEC production cuts and steadying equities markets.

Brent crude futures rose 27 cents to settle at $57.33 a barrel, a 0.47 percent gain. U.S. Intermediate (WTI) crude futures rose 56 cents to settle at $48.52 a barrel, a 1.17 percent gain.

futures have gained more than 7 percent since last Monday.

"Momentum is coming back into the market from very depressed price levels," said.

Prices drew support from a report saying that is planning to cut crude exports to around 7.1 million barrels per day (bpd) by the end of January.

OPEC and its allies are trying to rein in a surge in global supply, driven mostly by the United States, where production surpassed 11 million bpd in 2018. production has pushed up U.S. inventories.

OPEC fell in December by 460,000 barrels per day (bpd) to 32.68 million bpd, a survey found last week, led by cuts from top exporter

"We continue to view the OPEC production cuts that became official last week as a legitimate bullish consideration and we still look for the reduction to translate to a reduced U.S. crude surplus that could potentially be erased in some 8-9 weeks," Jim Ritterbusch, of Ritterbusch and Associates, said in a note.

U.S. crude inventories at Cushing, Oklahoma, the delivery point for U.S. crude futures, fell by 565,000 barrels from last Tuesday to Friday, traders said, citing data from market intelligence firm

More upbeat equity markets also offered support.

"When stock markets are strong oil usually follows suit," said.

Shares have risen on expectations that trade talks this week between the and will ease the trade war. Disruptions to trade undermine prospects for economic growth and

said in a note it had downgraded its average Brent for 2019 to $62.50 a barrel from $70 due to "the strongest macro headwinds since 2015."

cut its 2019 for Brent by $9 to $64 a barrel and reduced its forecast for U.S. light crude by $9 to $57 a barrel.

(Additional reporting by in London and Henning Gloystein in Singapore; Editing by and Sandra Maler)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, January 08 2019. 02:07 IST
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