Benchmark oil prices posted weekly gains during the week ending Feb. 15, with the price of West Texas Intermediate (WTI) for March delivery up by 5.4 percent and Brent crude for April delivery up by 6.7 percent.
In the previous week ending Feb. 8, oil prices fell. WTI and Brent crude decreased by 4.6 percent and 1.1 percent, respectively. At the end of that week, WTI settled at 52.72 U.S. dollars a barrel, while Brent crude closed at 62.1 dollars a barrel.
The U.S. oil rig count rose by three this week, bringing the total count to 857. The number of active drilling rigs in the United States increased by two to 1,051, or 76 more than the same time last year.
On Monday, oil prices fell as rising U.S. rig count and energy demand concerns weighed on the market. WTI decreased 0.31 dollar to settle at 52.41 dollars a barrel, while Brent crude dropped 0.59 dollar to close at 61.51 dollars a barrel.
Traders fretted over signs of rising U.S. oil production and concerned about a slowdown in energy demand triggered by a weakening global economy, experts noted.
In its latest Short-Term Energy Outlook released on Tuesday, the U.S. Energy Information Administration (EIA) reported that U.S. crude oil production averaged 12.0 million barrels per day in January, up 90,000 barrels per day from December 2018. It also forecast that U.S. crude oil production is going to average 12.4 million barrels per day in 2019 and 13.2 million barrels per day in 2020, with most of the growth coming from the Permian region of the state of Texas and New Mexico.
According to EIA, global liquid fuels inventories grew by an estimated 0.5 million barrels per day in 2018, and it is expected to grow by 0.4 million barrels per day in 2019 and by 0.6 million barrels per day in 2020.
Meanwhile, the European Commission cut its forecast for euro zone economic growth in 2019 and 2020 in its latest report, reigniting fears of global economic slowdown.
Furthermore, a stronger U.S. dollar made commodities priced in the currency, such as crude oil, less attractive to investors.
On Tuesday, oil prices climbed as latest data showed the Organization of the Petroleum Exporting Countries (OPEC) significantly curbed the crude oil production in January, indicating a tightening global supply. WTI increased 0.69 dollar to settle at 53.10 dollars a barrel, and Brent crude climbed 0.91 dollar to close at 62.42 dollars a barrel.
OPEC reported on Tuesday that crude oil production decreased by 797,000 barrels per day in January to average 30.81 million barrels per day.
Preliminary data indicated that global oil supply decreased in January by 1.03 million barrels per day, month-on-month, to average 99.32 million barrels per day.
The report came after a meeting in December that OPEC and some other major oil producers, including Russia, pledged to cut production by 1.2 million barrels per day, effective from January 2019.
On Wednesday, oil prices gained as reports showed further reduction in global output, bolstering the market. WTI increased 0.80 dollar to settle at 53.90 dollars a barrel, while Brent crude rose 1.19 dollars to close at 63.61 dollars a barrel.
Global supply fell 1.4 million barrels per day to 99.7 million barrels per day in January, said the monthly report on Wednesday by the International Energy Agency.
On Thursday, oil prices extended gains as trade optimism and reports of further reduction in global energy supply bolstered the market. WTI increased 0.51 dollar to settle at 54.41 dollars a barrel, while Brent crude climbed 0.96 dollar to close at 64.57 dollars a barrel.
On Friday, oil prices continued to advance as the market was bolstered by signs of progress on U.S.-China trade talks and a tightening energy supply. WTI increased 1.18 dollars to settle at 55.59 dollars a barrel, while Brent crude rose 1.68 dollars to close at 66.25 dollars a barrel.
China and the United States held the sixth round of high-level economic and trade consultations in Beijing from Thursday to Friday.
The two sides earnestly implemented the consensus reached by the two heads of state during their Argentina meeting late last year, and had in-depth communication on topics of mutual concern including technological transfer, intellectual property rights protection, non-tariff barriers, the service industry, agriculture, trade balance and implementation mechanism; as well as on issues of China's concern.
Both sides reached consensus in principle on major issues and had specific discussions about a memorandum of understanding on bilateral economic and trade issues.
The two sides said they would step up their work within the time limit for consultations set by both heads of state, and strive for consensus.
They agreed that consultations will be continued in Washington in the upcoming week. The market will focus on the development of the talks.
In the previous week ending Feb. 8, oil prices fell. WTI and Brent crude decreased by 4.6 percent and 1.1 percent, respectively. At the end of that week, WTI settled at 52.72 U.S. dollars a barrel, while Brent crude closed at 62.1 dollars a barrel.
The U.S. oil rig count rose by three this week, bringing the total count to 857. The number of active drilling rigs in the United States increased by two to 1,051, or 76 more than the same time last year.
On Monday, oil prices fell as rising U.S. rig count and energy demand concerns weighed on the market. WTI decreased 0.31 dollar to settle at 52.41 dollars a barrel, while Brent crude dropped 0.59 dollar to close at 61.51 dollars a barrel.
Traders fretted over signs of rising U.S. oil production and concerned about a slowdown in energy demand triggered by a weakening global economy, experts noted.
In its latest Short-Term Energy Outlook released on Tuesday, the U.S. Energy Information Administration (EIA) reported that U.S. crude oil production averaged 12.0 million barrels per day in January, up 90,000 barrels per day from December 2018. It also forecast that U.S. crude oil production is going to average 12.4 million barrels per day in 2019 and 13.2 million barrels per day in 2020, with most of the growth coming from the Permian region of the state of Texas and New Mexico.
According to EIA, global liquid fuels inventories grew by an estimated 0.5 million barrels per day in 2018, and it is expected to grow by 0.4 million barrels per day in 2019 and by 0.6 million barrels per day in 2020.
Meanwhile, the European Commission cut its forecast for euro zone economic growth in 2019 and 2020 in its latest report, reigniting fears of global economic slowdown.
Furthermore, a stronger U.S. dollar made commodities priced in the currency, such as crude oil, less attractive to investors.
On Tuesday, oil prices climbed as latest data showed the Organization of the Petroleum Exporting Countries (OPEC) significantly curbed the crude oil production in January, indicating a tightening global supply. WTI increased 0.69 dollar to settle at 53.10 dollars a barrel, and Brent crude climbed 0.91 dollar to close at 62.42 dollars a barrel.
OPEC reported on Tuesday that crude oil production decreased by 797,000 barrels per day in January to average 30.81 million barrels per day.
Preliminary data indicated that global oil supply decreased in January by 1.03 million barrels per day, month-on-month, to average 99.32 million barrels per day.
The report came after a meeting in December that OPEC and some other major oil producers, including Russia, pledged to cut production by 1.2 million barrels per day, effective from January 2019.
On Wednesday, oil prices gained as reports showed further reduction in global output, bolstering the market. WTI increased 0.80 dollar to settle at 53.90 dollars a barrel, while Brent crude rose 1.19 dollars to close at 63.61 dollars a barrel.
Global supply fell 1.4 million barrels per day to 99.7 million barrels per day in January, said the monthly report on Wednesday by the International Energy Agency.
On Thursday, oil prices extended gains as trade optimism and reports of further reduction in global energy supply bolstered the market. WTI increased 0.51 dollar to settle at 54.41 dollars a barrel, while Brent crude climbed 0.96 dollar to close at 64.57 dollars a barrel.
On Friday, oil prices continued to advance as the market was bolstered by signs of progress on U.S.-China trade talks and a tightening energy supply. WTI increased 1.18 dollars to settle at 55.59 dollars a barrel, while Brent crude rose 1.68 dollars to close at 66.25 dollars a barrel.
China and the United States held the sixth round of high-level economic and trade consultations in Beijing from Thursday to Friday.
The two sides earnestly implemented the consensus reached by the two heads of state during their Argentina meeting late last year, and had in-depth communication on topics of mutual concern including technological transfer, intellectual property rights protection, non-tariff barriers, the service industry, agriculture, trade balance and implementation mechanism; as well as on issues of China's concern.
Both sides reached consensus in principle on major issues and had specific discussions about a memorandum of understanding on bilateral economic and trade issues.
The two sides said they would step up their work within the time limit for consultations set by both heads of state, and strive for consensus.
They agreed that consultations will be continued in Washington in the upcoming week. The market will focus on the development of the talks.
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