ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • RBI extends implementation of card tokenisation norms by 3 months; deadline extended till 30 September
  • EXCLUSIVE: 'Noida International Airport at Jewar to be jewel in crown of Indian aviation sector' - Know what all is coming up at
  • D-Street Corner: Market gains 2.7% in highly volatile week, investors richer by 5.5 lakh cr; what should investors do on Monday?
  • Sebi allows UPI payment option to invest in public issues of REITs, InvITs with effect from 1 August
  • Netflix lays off 450 employees in two months—Here's what's bothering OTT giant
Read in App
Business News » World News

Oil prices stable amid OPEC supply cuts, but US-China trade tensions remain drag

Oil prices were stable on Monday amid ongoing supply cuts by producer club OPEC, although markets remained tense amid concerns the Sino-U.S. trade war could trigger a broad economic slowdown. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Oil prices stable amid OPEC supply cuts, but US-China trade tensions remain drag
WTI crude futures were at $58.54 per barrel, 9 cents below their last settlement. Image source: Reuters

Oil prices were stable on Monday amid ongoing supply cuts by producer club OPEC, although markets remained tense amid concerns the Sino-U.S. trade war could trigger a broad economic slowdown. Front-month Brent crude futures, the international benchmark for oil prices, were at $68.79 per barrel at 0247 GMT, up 10 cents, or 0.2 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $58.54 per barrel, 9 cents below their last settlement. "The relative strength of the very short-end of the (price) curve likely reflects the market pricing in a known variable of lower supplies from OPEC+," said Edward Bell, commodity analyst at Emirates NBD bank.

A group of producers led by the Organization of the Petroleum Exporting Countries (OPEC), known as OPEC+, has been withholding supply since the start of the year to tighten the market and prop up prices. But Monday`s gain could not make up for falls last week, when both crude futures contracts registered their biggest price declines this year amid concerns that the U.S.-China trade dispute could accelerate a global economic slowdown.

"Sentiment remains fragile and vulnerable to any deterioration in U.S.-China trade frictions," said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore. Money managers cut their net long U.S. crude futures and options positions in the week to May 21, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

"Some signs of low confidence are creeping into positioning data," Bell said. In oil futures markets, the trade war effect is better seen beyond the spot market. "The impact from a trade war is a more medium- to long-term issue and December spreads weakened sharply over the last week," he said. Beyond financial markets, there are also signs on the ground of a slowdown in growth in oil demand.

Amid the trade disputes between the United States and China, profits for China`s industrial firms dropped in April on slowing demand and manufacturing activity, according to data published by the National Bureau of Statistics (NBS) on Monday. China`s automobile sales, a key driver of global oil demand growth, will reach around 28.1 million units this year, unchanged from levels seen in 2018, when the country`s auto market contracted for the first time in more than two decades, state news agency Xinhua reported on Sunday.

The outlook for flat car sales may be too optimistic still, as monthly sales have so far declined for 10 consecutive months. A bright spot for carmakers, although not for the oil industry, is that sales of new energy vehicles are likely to grow by about 27 percent to hit 1.6 million units, from 1.26 units in 2018, the report said.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Brent CrudeOPEC
Written By: Reuters
Updated: Mon, May 27, 2019
08:37 am
Reuters
RELATED NEWS
Rupee drops 15 paise to 78.13 against US dollar Rupee drops 15 paise to 78.13 against US dollar
Crude oil swings higher as tight supplies overshadow demand destruction Crude oil swings higher as tight supplies overshadow demand destruction
Oil edges down as demand concerns weigh, heading for weekly fall Oil edges down as demand concerns weigh, heading for weekly fall
Crude Oil prices slip ahead of expected US Fed interest rate hike Crude Oil prices slip ahead of expected US Fed interest rate hike
 Crude oil rises on tight supplies; trade choppy on demand worries Crude oil rises on tight supplies; trade choppy on demand worries

LATEST NEWS

This Mukul Agrawal textile stock may grow over 52% on strong export outlook and government initiatives

Strong fundamentals, good dividend yield make Coal India, ONGC, NTPC, 3 other stocks good bets in current market—Check TPs, dividend payout ratios

How has technology changed the face of investing and what lies ahead? Analyst decodes

Sebi allows UPI payment option to invest in public issues of REITs, InvITs with effect from 1 August

iOS users can now securely save their passwords in Chrome

BharatNCAP: Government proposes to implement vehicle safety rating, issues draft notification

Auto major Ford extends production at Tamil Nadu plant till July-end

Net profits of manufacturing companies surged by over 50% in FY22, says RBI

Two-thirds of MSME loan originations concentrated in Maharashtra, Tamil Nadu, and Delhi: Credit information company data

Indian markets should start its journey upward by October – know why? Analyst lists out 4 reasons

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV