U.S. oil prices inch up amid stockpile drop, signs of easing trade tensions
U.S. oil prices edged up on Thursday, buoyed by a drawdown in inventories and by signs of easing trade tensions between Washington and Beijing.
Oil prices have also been supported by OPEC-led supply curbs announced last week, although gains have been muted after the producer group lowered its 2019 demand forecast.
U.S. West Texas Intermediate (WTI) crude futures
International Brent crude oil futures
"Crude oil prices rose, helped by the easing trade tension, as well as a fall in inventories," ANZ bank said on Thursday.
"The news that China is looking to redraft its `Made in China` 2025 plan boosted hopes that trade talks are progressing better than expected."
China appears to be easing its high-tech industrial development push, dubbed `Made in China 2025`, which has long irked the United States, amid talks between the two countries to reduce trade tensions, according to new guidance to local governments.
A drop in U.S. crude stockpiles, though less than expected, has helped boost sentiment, analysts said.
U.S. crude inventories
Meanwhile, the Organisation of the Petroleum Exporting Countries (OPEC) said 2019 demand for its crude would fall to 31.44 million barrels per day, 100,000 bpd less than predicted last month and 1.53 million less than it currently produces.
This adds to the concerns of several market watchers that the decision led by the group to cut production by 1.2 million bpd overall might not be enough to override a glut, especially on the back of soaring U.S. output.
"Oil markets have been concerned about the possibility of weaker macroeconomic and oil demand growth; when combined with booming U.S. shale output, this could keep markets oversupplied in 2019, even with the OPEC cut," Societe Generale analyst Michael Wittner said in a note.
"At this point, the OPEC cuts appear to have merely put a floor under prices."
The United States, where crude production
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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