Oil poised to clock largest annual gain since 2016

Oil prices held firm on the final day of CY2019 and are poised for the biggest yearly rise since 2016, thanks to the optimism over the US-China trade deal as well as OPEC supply cuts.

Brent crude futures for March delivery were at $66.66/barrel, down 1 cent. Brent for February delivery closed on Monday at $68.44/bbl. US WTI crude for February was down 3 cents at $61.65/bbl.

Brent has gained ~24% in 2019 and WTI has risen ~36%. Both the benchmarks are set for their biggest annual gain in three years. The White House’s trade adviser reportedly said on Monday that the US-China Phase 1 trade deal would likely be signed in the next week.

Further, tensions remain elevated in the Middle East after US air strikes on Sunday against the Katib Hezbollah militia group in Iraq and Syria. Operations resumed at Iraq’s Nassiriya oilfield on Monday after protesters briefly halted production. 

In addition, US crude inventories are expected to fall by ~3.2mn barrels in the week to Dec 27, heading for a third consecutive weekly fall, a preliminary Reuters poll showed on Monday

About Gosip4U

Gosip4U is the digital wing of india - India's leading media and communications group with its interests spanning across country.


Post a Comment

Please add comment