Crude has increased since early October as the US and China moved closer to resolving trade conflicts. The International Energy Agency predicts the market is likely to remain “calm” next year as soaring production outside OPEC and high inventories keep consumers comfortably supplied. WTI Crude is $57.62; Brent is $63.24 this morning.
The IEA kept its assessments for growth in global oil demand in 2019 and 2020 at 1 million bpd and 1.2 million bpd, respectively. If some or all tariffs were lifted in the coming months, “world economic growth and oil demand growth would both rise significantly,” though it may not be immediate. WTI Crude is $56.69; Brent is $61.99 this morning.
Futures added as much as 1.1% in New York after climbing 0.6% the previous day. The American Petroleum Institute reported that stockpiles fell by 541,000 barrels last week. WTI Crude is $57.75; Brent is $63.17 this morning.
In its annual Energy Outlook report, the IEA said that even as annual U.S. production growth slows from the pace seen in recent years, its forecast scenario for policies already announced mean that the country will account for 85% of the increase in global oil production to 2030. WTI Crude is $56.41; Brent is $61.43 this morning.
Market participants continue to believe in a (partial) trade agreement to be signed soon, say analysts. Increasing doubts about this would put oil prices under pressure. Trump gives a speech later on Tuesday, and investors are anxious for an update on the talks. WTI Crude is $57.05; Brent is $62.41 this morning.
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