Friday , August 12 2022

Oil on the rise, trade takes precedence over production US


New York (awp / afp) – Oil prices were higher on Friday due to hopes for better trade relations between the US and China and reducing the OPEC supply, occulting a production record in the United States.

Brent crude oil from North Sea presented in April up to $ 67.12 in London, up 5 cents from Thursday.

In New York, the US barrel of WTI for the same season was 30 cents to 57.26 dollars.

The hope of an agreement between the United States and China grew after a new week of extended discussions until Sunday between the first two world economies.

The positive signs were many on Friday: US President Donald Trump, China's main businessman Liu He, received the White House and said that "a very good opportunity" was to reach a trade agreement.

As a result, "we do not anticipate (either) a reduction in the Chinese economy" or the global demand for gravel by gravel, says Bart Melek of TD Securities.

In addition, investors continued to rely on continued operation by the Institute of Petroleum Exporting Countries (OPEC) to designate crude oil supply on the market.

"The markets expect Saudi Arabia and OPEC to become even more aggressive," said Melek.

OPEC and its partners, including Russia, have promised to restrict their abstractions since January.

Saudi Arabia, the world's largest exporter, is lower than the agreed levels in early December, and it has other members of the cartel to follow their suit.

In addition, Venezuela and Iran have been withdrawn exclusively by the sanctions imposed by Washington.

In this favorable context to inappropriate prices, brokers continued the daily production record of 12 million barrels in the United States issued by the US Energy Information Agency (EIA).

This level of production is expected ", as the EIA even anticipates its monthly monthly production report of 12.1 mbj in February," said Comerzbank analysts.

"Despite jumping in the US supply, OPEC's voluntary and involuntary production cuts will restrict short-term price reductions," said analysts at Goldman Sachs.

swing-ALB / lo / July

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