Oil eases Tuesday after Trump urges OPEC to curb efforts to boost prices
By Koustav Samanta / Reuters
Petroleumworld 02 26 2019
Oil inched lower on Tuesday to extend losses of more than 3 percent from the previous session, easing after U.S. President Donald Trump called on OPEC to rein in its efforts to boost prices.
International Brent futures were at $64.70 a barrel at 0728 GMT, down 6 cents, or 0.1 percent, from their last close. Brent, which plunged 3.5 percent on Monday, touched its lowest since Feb. 14 on Tuesday at $64.32 a barrel.
U.S. West Texas Intermediate (WTI) crude futures were at $55.26 per barrel, down 22 cents, or 0.4 percent.
Analysts said the United States, the world's biggest oil consumer, was keen to counter a recent rally in prices driven by major exporters trimming production. Brent prices gained 8.1 percent from Feb. 8 to Feb. 22.
Tweeting on Monday, Trump expressed concern about oil prices and repeated his previous calls on the Organization of the Petroleum Exporting Countries (OPEC) to keep prices steady.
“The problem is we are having these sporadic tweets impacting global commodity markets,” said Hue Frame, portfolio manager at Frame Funds in Sydney. “It does make it increasingly difficult to have a consistent fundamental read on the data.”
“We still believe the majority of global economic activity is slowing, with which it could be assumed global oil demand will also slow.”
Oil markets, which have rallied on optimism about a U.S.-China trade deal over the last two weeks, were also the most vulnerable to a sell-off, analysts said.
Reuters commodity technical analyst Wang Tao said on Tuesday that U.S. crude may test support at $54.39 per barrel, a break below which could cause a loss to $53.18.
OPEC and some non-affiliated producers such as Russia agreed late last year to cut output by 1.2 million barrels per day (bpd) to prevent a large supply overhang from growing.
Shares breathe easy as Trump delays tariff hike
Analysts also noted that while Trump is attempting to ease prices lower, sanctions by the United States against oil exporters Iran and Venezuela have contributed to the recent gains and are providing a floor for prices.
But when Washington re-imposed sanctions against Iran's oil exports in November, it granted waivers to eight of Tehran's buyers to import some oil for 180 days, which ends in May this year.
“The sharp drop in oil prices is likely due to market jitters on potential waivers in U.S. sanctions on Iranian petroleum exports (in May),” said Benjamin Lu, commodities analyst at Singapore-based brokerage firm Phillip Futures.
“The effects of additional U.S. waivers on Iran will impede OPEC+ efforts to rebalance oil markets in 2019,” Lu added.
We invite you to join us as a sponsor.Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.
Reporting by Koustav Samanta in SINGAPORE and Colin Packham in SYDNEY; Editing by Christian Schmollinger and Joseph Radford from Reuters .
reuters.com 02 26 2019 07:54 GMT
Hit your target - Advertise with us
PW 300.000 plus request per week
Copyright© 1999-2019 Petroleumworld or respective author or news agency. All rights reserved.
We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.
Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.
Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!
We invite all our readers to share with us
their views and comments about this article.
Write to firstname.lastname@example.org
By using this link, you agree to allow PW
to publish your comments on our letters page.
Any question or suggestions,
please write to: email@example.com
Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels