Oil prices rose by more than one per cent on Friday as turmoil in Venezuela triggered concerns that its oil exports could soon be disrupted.

Washington on Thursday signalled it could impose sanctions on Venezuela's crude exports as Caracas descends further into political and economic turmoil.

International Brent crude oil futures were at $61.89 a barrel at 0246 GMT, 80 cents, or 1.3 per cent, above their last close.

US West Texas Intermediate (WTI) crude futures were at $53.90 per barrel, up 77 cents, or 1.5 per cent.

Amid violent street protests, Venezuela's opposition leader Juan Guaido declared himself interim president earlier this week, winning backing from Washington and large parts of Latin America, prompting Nicolas Maduro, the country's leader since 2013, to break relations with the United States.

Fundamentally, however, global oil markets are still well supplied, thanks in part to surging output in the United States, where crude production rose by more than 2 million barrels per day (bpd) last year to a record 11.9 million bpd.

Record US production would likely offset any short-term disruptions to Venezuelan supply due to possible US sanctions, Britain's Barclays on Thursday said in a note. The bank cut its 2019 average Brent crude oil forecast to $70 a barrel, down from $72 previously.

The surge in US output has resulted in swelling US fuel inventories.

Gasoline stocks rose for an eighth consecutive week in the week to January 18, by 4.1 million barrels to a record 259.6 million barrels, the US Energy Information Administration (EIA) said in a weekly report on Thursday.

Crude inventories rose by 8 million barrels.

Oil prices rose by more than one per cent on Friday as turmoil in Venezuela triggered concerns that its oil exports could soon be disrupted. Washington on Thursday signalled it could impose sanctions on Venezuela's crude exports as Caracas descends further into political and economic turmoil.

Oil prices rose by more than one per cent on Friday as turmoil in Venezuela triggered concerns that its oil exports could soon be disrupted. Washington on Thursday signalled it could impose sanctions on Venezuela's crude exports as Caracas descends further into political and economic turmoil. International Brent crude oil futures were at $61.89 a barrel at 0246 GMT, 80 cents, or 1.3 per cent, above their last close. US West Texas Intermediate (WTI) crude futures were at $53.90 per barrel, up 77 cents, or 1.5 per cent. Amid violent street protests, Venezuela's opposition leader Juan Guaido declared himself interim president earlier this week, winning backing from Washington and large parts of Latin America, prompting Nicolas Maduro, the country's leader since 2013, to break relations with the United States. Fundamentally, however, global oil markets are still well supplied, thanks in part to surging output in the United States, where crude production rose by more than 2 million barrels per day (bpd) last year to a record 11.9 million bpd. Record US production would likely offset any short-term disruptions to Venezuelan supply due to possible US sanctions, Britain's Barclays on Thursday said in a note. The bank cut its 2019 average Brent crude oil forecast to $70 a barrel, down from $72 previously. The surge in US output has resulted in swelling US fuel inventories. Gasoline stocks rose for an eighth consecutive week in the week to January 18, by 4.1 million barrels to a record 259.6 million barrels, the US Energy Information Administration (EIA) said in a weekly report on Thursday. Crude inventories rose by 8 million barrels.

Oil prices jump as US threatens sanctions against Venezuela

<a href="https://www.google.com/url?q=http://www.wionews.com/business-economy/oil-prices-jump-as-us-threatens-sanctions-against-venezuela-192607&amp;sa=U&amp;ved=0ahUKEwjA7sSn6ojgAhWSiXAKHTiZC0sQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw3oBffrqBNuSAyi3_IBfrrd">Oil prices</a> edged up on Friday as turmoil in Venezuela increased the chances of tighter global supply if the United States makes good on signals that it could impose sanctions on Venezuelan exports.

But fresh data on surging US fuel stocks and worries about <a href="https://www.google.com/url?q=http://www.wionews.com/business-economy/rupee-rises-10-paise-against-us-dollar-in-early-trade-192624&amp;sa=U&amp;ved=0ahUKEwjA7sSn6ojgAhWSiXAKHTiZC0sQFggIMAE&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw32BeUu8AII9LBsZdVa4Ti4">US</a>-China trade talks weighed on prices.

Brent crude oil futures were at $61.17 a barrel at 0955 GMT, up 8 cents, or 0.13 per cent. Earlier on Friday, the international benchmark crude rose as high as $61.92.

Brent, however, has shed about 2.4 per cent since the start of trade on Monday and is on track to post its first week of losses in four weeks.

US West Texas Intermediate (WTI) crude futures were at $53.34 per barrel, up 21 cents, or 0.4 per cent.&nbsp;

Amid violent street protests, Venezuela's opposition leader Juan Guaido declared himself interim president this week, winning recognition from Washington and parts of Latin America.

Nicolas Maduro, the country's leader since 2013, responded by breaking relations with the United States.

"The oil market is partially pricing in the risk to Venezuela's crude production, which has been plummeting in recent years," Vandana Hari of Vanda Insights said.

RBC Europe predicted that sanctions could nearly double projected output shortfalls from the troubled exporter.

"Venezuelan production will decline by an additional 300,000-500,000 barrels per day (bpd) this year but such punitive measures could expand that outage by several hundred thousand barrels."

Global oil markets are still well supplied, however, thanks in part to surging output in the United States.

Record US production would likely offset any short-term disruptions to Venezuelan supply due to possible US sanctions, Britain's Barclays said in a note. The bank cut its 2019 average Brent forecast to $70 a barrel, from $72 previously.

The output surge has swollen US fuel stocks, and crude inventories rose by 8 million barrels last week, according to official data released on Thursday.

But demand may start to stutter because of a global economic slowdown, which is likely to dent fuel consumption.

A trade dispute between the United States and China and tightening financial conditions around the world have hurt manufacturing activity in most economies and dragged China's growth last year to the weakest in nearly 30 years.

According to Reuters polls of hundreds of economists worldwide, a synchronised global economic slowdown is underway and would deepen if the US-China trade war escalated.

 
&nbsp;

Oil prices edged up on Friday as turmoil in Venezuela increased the chances of tighter global supply if the United States makes good on signals that it could impose sanctions on Venezuelan exports.

Oil prices edged up on Friday as turmoil in Venezuela increased the chances of tighter global supply if the United States makes good on signals that it could impose sanctions on Venezuelan exports. But fresh data on surging US fuel stocks and worries about US-China trade talks weighed on prices. Brent crude oil futures were at $61.17 a barrel at 0955 GMT, up 8 cents, or 0.13 per cent. Earlier on Friday, the international benchmark crude rose as high as $61.92. Brent, however, has shed about 2.4 per cent since the start of trade on Monday and is on track to post its first week of losses in four weeks. US West Texas Intermediate (WTI) crude futures were at $53.34 per barrel, up 21 cents, or 0.4 per cent. Amid violent street protests, Venezuela's opposition leader Juan Guaido declared himself interim president this week, winning recognition from Washington and parts of Latin America. Nicolas Maduro, the country's leader since 2013, responded by breaking relations with the United States. "The oil market is partially pricing in the risk to Venezuela's crude production, which has been plummeting in recent years," Vandana Hari of Vanda Insights said. RBC Europe predicted that sanctions could nearly double projected output shortfalls from the troubled exporter. "Venezuelan production will decline by an additional 300,000-500,000 barrels per day (bpd) this year but such punitive measures could expand that outage by several hundred thousand barrels." Global oil markets are still well supplied, however, thanks in part to surging output in the United States. Record US production would likely offset any short-term disruptions to Venezuelan supply due to possible US sanctions, Britain's Barclays said in a note. The bank cut its 2019 average Brent forecast to $70 a barrel, from $72 previously. The output surge has swollen US fuel stocks, and crude inventories rose by 8 million barrels last week, according to official data released on Thursday. But demand may start to stutter because of a global economic slowdown, which is likely to dent fuel consumption. A trade dispute between the United States and China and tightening financial conditions around the world have hurt manufacturing activity in most economies and dragged China's growth last year to the weakest in nearly 30 years. According to Reuters polls of hundreds of economists worldwide, a synchronised global economic slowdown is underway and would deepen if the US-China trade war escalated.

Oil prices climb as US threatens sanctions against Venezuela

Oil prices jumped around 1.5 per cent on Monday, pushed up by optimism that talks in Beijing can resolve <a href="http://www.wionews.com/world/explaining-the-us-china-trade-war-which-grabbed-spotlight-in-2018-185043">a trade war between the United States and China</a>, while supply cuts by major producers also supported crude.

Brent crude futures were at $57.93 per barrel at 0635 GMT, up 87 cents, or 1.5 per cent, from their last close.

US West Texas Intermediate (WTI) crude oil futures were at $48.76 per barrel, up 80 cents, or 1.7 per cent.

Financial markets were riding a relief rally on Monday on expectations that face-to-face trade negotiations between delegates from Washington and Beijing, starting on Monday, would lead to an easing in tensions between the two biggest economies in the world.

The United States and Beijing have been locked in an escalating trade spat since early 2018, raising import tariffs on each other's goods. The dispute has weighed on economic growth.

In the latest sign of a widespread economic slowdown that could also hit fuel demand, British new car sales in 2018 fell at their fastest rate since the global financial crisis a decade ago, preliminary data from the Society of Motor Manufacturers and Traders (SMMT) showed on Monday.

Goldman Sachs said in a note on Monday it had downgraded its average Brent crude oil forecast for 2019 from $70 per barrel to $62.50 a barrel because of "the strongest macro headwinds since 2015."

J P Morgan said in a note late last week that "the 3 per cent global growth pace we have been anticipating for the next two quarters looks increasingly challenging."

The bank also said that "bond and commodity markets appear to be pricing in on average close to a 60 per cent chance of a US recession over the coming year compared to a 40 per cent chance by our economists and 27 per cent chance by the consensus."

Opec cuts, rising US supply

Despite the likelihood of a slowdown, future crude prices were being supported by supply cuts started late last year by a group of producers around the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC Russia.

Goldman said the cuts would result in a gradual increase in spot crude prices in 2019 as high inventories revert to their 5-year averages.

OPEC oil supply fell in December by 460,000 barrels per day (bpd), to 32.68 million bpd, a Reuters survey found last week, led by cuts from top exporter Saudi Arabia.

The cuts are aimed at reining in swelling supply, especially in the United States.

Because of record US crude oil production of 11.7 million bpd, American fuel stockpiles are rising, according to weekly data by the Energy Information Administration (EIA) released on Friday.

Crude oil inventories rose by 7,000 barrels in the week ended on December 28, to 441.42 million barrels, more than 5 million barrels above their 5-year average.

Distillate and gasoline stocks, however, rose by a whopping 9.5 million and 6.9 million barrels, to 119.9 million and 240 million barrels respectively, the EIA data showed.

Financial markets were riding a relief rally on Monday on expectations that face-to-face trade negotiations between delegates from Washington and Beijing would lead to an easing in tensions.

Oil prices jumped around 1.5 per cent on Monday, pushed up by optimism that talks in Beijing can resolve a trade war between the United States and China, while supply cuts by major producers also supported crude. Brent crude futures were at $57.93 per barrel at 0635 GMT, up 87 cents, or 1.5 per cent, from their last close. US West Texas Intermediate (WTI) crude oil futures were at $48.76 per barrel, up 80 cents, or 1.7 per cent. Financial markets were riding a relief rally on Monday on expectations that face-to-face trade negotiations between delegates from Washington and Beijing, starting on Monday, would lead to an easing in tensions between the two biggest economies in the world. The United States and Beijing have been locked in an escalating trade spat since early 2018, raising import tariffs on each other's goods. The dispute has weighed on economic growth. In the latest sign of a widespread economic slowdown that could also hit fuel demand, British new car sales in 2018 fell at their fastest rate since the global financial crisis a decade ago, preliminary data from the Society of Motor Manufacturers and Traders (SMMT) showed on Monday. Goldman Sachs said in a note on Monday it had downgraded its average Brent crude oil forecast for 2019 from $70 per barrel to $62.50 a barrel because of "the strongest macro headwinds since 2015." J P Morgan said in a note late last week that "the 3 per cent global growth pace we have been anticipating for the next two quarters looks increasingly challenging." The bank also said that "bond and commodity markets appear to be pricing in on average close to a 60 per cent chance of a US recession over the coming year compared to a 40 per cent chance by our economists and 27 per cent chance by the consensus." Opec cuts, rising US supply Despite the likelihood of a slowdown, future crude prices were being supported by supply cuts started late last year by a group of producers around the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) as well as non-OPEC Russia. Goldman said the cuts would result in a gradual increase in spot crude prices in 2019 as high inventories revert to their 5-year averages. OPEC oil supply fell in December by 460,000 barrels per day (bpd), to 32.68 million bpd, a Reuters survey found last week, led by cuts from top exporter Saudi Arabia. The cuts are aimed at reining in swelling supply, especially in the United States. Because of record US crude oil production of 11.7 million bpd, American fuel stockpiles are rising, according to weekly data by the Energy Information Administration (EIA) released on Friday. Crude oil inventories rose by 7,000 barrels in the week ended on December 28, to 441.42 million barrels, more than 5 million barrels above their 5-year average. Distillate and gasoline stocks, however, rose by a whopping 9.5 million and 6.9 million barrels, to 119.9 million and 240 million barrels respectively, the EIA data showed.

Oil rises on US-China trade talks, OPEC-led supply cuts

Oil rose to around $57 a barrel on Friday <a href="http://www.wionews.com/business-economy/oil-prices-fall-over-volatile-currency-slowdown-worries-188056">after China said it would hold trade talks </a>with the United States and a survey showed China's services sector expanded in December, while signs of lower crude supply also lent support.

The Organization of the Petroleum Exporting Countries<a href="http://www.wionews.com/world/oil-falls-to-53-on-economic-worries-surging-supply-187910">(OPEC) cut crude output in December&nbsp;</a>and the American Petroleum Institute (API) reported a 4.5 million-barrel drop in crude inventories.&nbsp;

Brent crude, the global benchmark, was up $1.25 to $57.20 a barrel at 1113 GMT. US&nbsp;crude oil was up 90 cents at $47.99.

"Recent Chinese data is not confirming the doom-and-gloom trend," said Olivier Jakob, oil analyst at Petromatrix. "And you've got OPEC cutting."

China's services sector extended its solid expansion in December, a private survey showed on Friday, bucking a trend of downbeat economic data.

Both oil benchmarks are on track for solid gains in the first week of 2019 trading despite rising concerns that the China-US&nbsp;trade war will lead to a global economic slowdown.

But in comments that helped oil to rally, China's commerce ministry said it would hold vice-ministerial trade talks with US&nbsp;counterparts in Beijing on January&nbsp;7-8.

The two nations have been locked in a trade war for much of the past year, disrupting the flow of hundreds of billions of dollars worth of goods and raising concern of slowing growth.

Despite the demand-side worries, oil has received some support as supply cuts announced by the global coalition of producers known as OPEC+ kick in.

OPEC, Russia and other non-members agreed in December to reduce supply by 1.2 million barrels per day (bpd) in 2019. OPEC's share of that cut is 800,000 bpd.

The Reuters survey on Thursday found OPEC supply fell by 460,000 bpd in December, following assessments by Bloomberg and JBC Energy also showing a sizeable decline.

The focus now will be on whether producers deliver further curbs in January to implement the deal fully. Iraq, a laggard in reducing production in the last OPEC cutback, said on Friday it would stick to the new accord.

"The market is likely to take some comfort from the fact that crude oil production from the OPEC+ will continue to drop," said Ole Hansen of Saxo Bank.

"Sentiment, however, is weak with (US&nbsp;President Donald) Trump's trade war with China a major hurdle."

Oil rose to around $57 a barrel on Friday after China said it would hold trade talks with the United States and a survey showed China's services sector expanded in December, while signs of lower crude supply also lent support.

Oil rose to around $57 a barrel on Friday after China said it would hold trade talks with the United States and a survey showed China's services sector expanded in December, while signs of lower crude supply also lent support. The Organization of the Petroleum Exporting Countries(OPEC) cut crude output in December and the American Petroleum Institute (API) reported a 4.5 million-barrel drop in crude inventories. Brent crude, the global benchmark, was up $1.25 to $57.20 a barrel at 1113 GMT. US crude oil was up 90 cents at $47.99. "Recent Chinese data is not confirming the doom-and-gloom trend," said Olivier Jakob, oil analyst at Petromatrix. "And you've got OPEC cutting." China's services sector extended its solid expansion in December, a private survey showed on Friday, bucking a trend of downbeat economic data. Both oil benchmarks are on track for solid gains in the first week of 2019 trading despite rising concerns that the China-US trade war will lead to a global economic slowdown. But in comments that helped oil to rally, China's commerce ministry said it would hold vice-ministerial trade talks with US counterparts in Beijing on January 7-8. The two nations have been locked in a trade war for much of the past year, disrupting the flow of hundreds of billions of dollars worth of goods and raising concern of slowing growth. Despite the demand-side worries, oil has received some support as supply cuts announced by the global coalition of producers known as OPEC+ kick in. OPEC, Russia and other non-members agreed in December to reduce supply by 1.2 million barrels per day (bpd) in 2019. OPEC's share of that cut is 800,000 bpd. The Reuters survey on Thursday found OPEC supply fell by 460,000 bpd in December, following assessments by Bloomberg and JBC Energy also showing a sizeable decline. The focus now will be on whether producers deliver further curbs in January to implement the deal fully. Iraq, a laggard in reducing production in the last OPEC cutback, said on Friday it would stick to the new accord. "The market is likely to take some comfort from the fact that crude oil production from the OPEC+ will continue to drop," said Ole Hansen of Saxo Bank. "Sentiment, however, is weak with (US President Donald) Trump's trade war with China a major hurdle."

Oil prices rise over China-US trade talks, OPEC cuts

Oil prices fell on Thursday amid <a href="http://www.wionews.com/world/oil-falls-to-53-on-economic-worries-surging-supply-187910">volatile currency and stock markets</a>, coupled with concerns that an economic slowdown in 2019 will cut into fuel demand just as crude supplies are surging.

US West Texas Intermediate crude oil futures dropped 75 cents to $45.79 a barrel by 0900 GMT.

International Brent crude futures were down 50 cents at $54.41 a barrel.

In physical oil markets, top exporter Saudi Arabia is expected to cut February prices for heavier crude grades sold to Asia by up to 50 cents a barrel due to weaker fuel oil margins, respondents to a Reuters survey said on Thursday.

"Fears of future economic and earnings growth continue to be the main driver in causing market jitters," Singapore-based brokerage Phillip Futures said.

Markets were roiled by a more than 3 per cent slump in the US dollar against the Japanese yen, and after tech giant Apple cut its sales forecast.

"We did not foresee the magnitude of the economic deceleration, particularly in Greater China," Apple chief executive Tim Cook said.

The slowdown in China and turmoil in stock and currency markets appears to be making investors nervous, including in oil markets.

"This is a continuation of the volatility afflicting commodities and oil with the last 24 hours marked by the release of various weak economic data points, particularly manufacturing PMIs, for major economies," consultancy JBC Energy said.

Oil markets are also under pressure from a surge in supply just as demand growth is expected to slow.

US crude production stood at a record 11.7 million barrels per day (bpd) in late 2018, making America the world's biggest oil producer.

Speaking to reporters on Wednesday, US President Donald Trump said US pressure had kept production high among allies in the Organization of the Petroleum Exporting Countries(OPEC).

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Do you think it’s just luck that gas prices are so low, and falling? Low gas prices are like another Tax Cut!
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"People see that gasoline is way down and the reason it's way down is because I called up some of the OPEC people," Trump said. "I made calls, I said you better let that oil, that gasoline flow, and they did," he added.

Others are not sitting idle, with Russian output reaching a record of more than 11 million bpd in 2018.

Supply from Iraq, the second-biggest producer in OPEC, is also up, with December exports at 3.73 million bpd versus 3.37 million bpd in November.

Oil prices fell on Thursday amid volatile currency and stock markets, coupled with concerns that an economic slowdown in 2019 will cut into fuel demand just as crude supplies are surging.

Oil prices fell on Thursday amid volatile currency and stock markets, coupled with concerns that an economic slowdown in 2019 will cut into fuel demand just as crude supplies are surging. US West Texas Intermediate crude oil futures dropped 75 cents to $45.79 a barrel by 0900 GMT. International Brent crude futures were down 50 cents at $54.41 a barrel. In physical oil markets, top exporter Saudi Arabia is expected to cut February prices for heavier crude grades sold to Asia by up to 50 cents a barrel due to weaker fuel oil margins, respondents to a Reuters survey said on Thursday. "Fears of future economic and earnings growth continue to be the main driver in causing market jitters," Singapore-based brokerage Phillip Futures said. Markets were roiled by a more than 3 per cent slump in the US dollar against the Japanese yen, and after tech giant Apple cut its sales forecast. "We did not foresee the magnitude of the economic deceleration, particularly in Greater China," Apple chief executive Tim Cook said. The slowdown in China and turmoil in stock and currency markets appears to be making investors nervous, including in oil markets. "This is a continuation of the volatility afflicting commodities and oil with the last 24 hours marked by the release of various weak economic data points, particularly manufacturing PMIs, for major economies," consultancy JBC Energy said. Oil markets are also under pressure from a surge in supply just as demand growth is expected to slow. US crude production stood at a record 11.7 million barrels per day (bpd) in late 2018, making America the world's biggest oil producer. Speaking to reporters on Wednesday, US President Donald Trump said US pressure had kept production high among allies in the Organization of the Petroleum Exporting Countries(OPEC). Do you think it’s just luck that gas prices are so low, and falling? Low gas prices are like another Tax Cut! — Donald J. Trump (@realDonaldTrump) January 1, 2019 × "People see that gasoline is way down and the reason it's way down is because I called up some of the OPEC people," Trump said. "I made calls, I said you better let that oil, that gasoline flow, and they did," he added. Others are not sitting idle, with Russian output reaching a record of more than 11 million bpd in 2018. Supply from Iraq, the second-biggest producer in OPEC, is also up, with December exports at 3.73 million bpd versus 3.37 million bpd in November.

Oil prices fall over volatile currency, slowdown worries

Oil fell to about $53 a barrel on Wednesday, under pressure from rising output in major OPEC and non-OPEC producers and due to concerns about an economic slowdown that could weaken demand.

Russian production hit a post-Soviet record in 2018, figures showed on Wednesday.

Earlier this week, official data showed US&nbsp;output reached a record in October and Iraq boosted oil exports in December.

Brent crude fell 72 cents to $53.08 a barrel at 1055 GMT. On Dec. 26, it hit $49.93, the lowest since July 2017. U.S. crude slipped 56 cents to $44.85.

"The omens are far from encouraging," said Stephen Brennock of oil broker PVM, citing rising non-OPEC supply and the likelihood of further increases in oil inventories.

"The current bearish bias will therefore continue in the near term and it stands to reason that oil will struggle to break out from its current trough," he said.

Oil fell in 2018 for the first year since 2015 after buyers fled the market in the fourth quarter over growing worries about excess supply and the economic slowdown.

Surging shale output has helped make the United States the world's biggest oil producer, ahead of Saudi Arabia and Russia. Oil production has been at or near record highs in all three countries.

U.S. President Donald Trump celebrated the low prices. "Do you think it’s just luck that gas prices are so low, and falling? Low gas prices are like another Tax Cut!" he wrote on his official Twitter account on Tuesday.

Adding to concern about a slowing global economy, a series of purchasing managers' indexes for December mostly showed declines or slowing manufacturing activity across Asia, the main growth region for oil demand.

Independent market analyst Greg McKenna said in a note on Wednesday that it was "difficult for traders and investors to ignore what looks like a genuine global economic slowdown."

Signs of rising production illustrate the challenge facing the Organization of the Petroleum Exporting Countries and its allies including Russia, which are returning to supply restraint in 2019 to support the market.

However, the energy minister for the United Arab Emirates, an OPEC member, said on Tuesday he remained optimistic about achieving a market balance in the first quarter.

Oil fell to about $53 a barrel on Wednesday, under pressure from rising output in major OPEC and non-OPEC producers and due to concerns about an economic slowdown that could weaken demand.

Oil fell to about $53 a barrel on Wednesday, under pressure from rising output in major OPEC and non-OPEC producers and due to concerns about an economic slowdown that could weaken demand. Russian production hit a post-Soviet record in 2018, figures showed on Wednesday. Earlier this week, official data showed US output reached a record in October and Iraq boosted oil exports in December. Brent crude fell 72 cents to $53.08 a barrel at 1055 GMT. On Dec. 26, it hit $49.93, the lowest since July 2017. U.S. crude slipped 56 cents to $44.85. "The omens are far from encouraging," said Stephen Brennock of oil broker PVM, citing rising non-OPEC supply and the likelihood of further increases in oil inventories. "The current bearish bias will therefore continue in the near term and it stands to reason that oil will struggle to break out from its current trough," he said. Oil fell in 2018 for the first year since 2015 after buyers fled the market in the fourth quarter over growing worries about excess supply and the economic slowdown. Surging shale output has helped make the United States the world's biggest oil producer, ahead of Saudi Arabia and Russia. Oil production has been at or near record highs in all three countries. U.S. President Donald Trump celebrated the low prices. "Do you think it’s just luck that gas prices are so low, and falling? Low gas prices are like another Tax Cut!" he wrote on his official Twitter account on Tuesday. Adding to concern about a slowing global economy, a series of purchasing managers' indexes for December mostly showed declines or slowing manufacturing activity across Asia, the main growth region for oil demand. Independent market analyst Greg McKenna said in a note on Wednesday that it was "difficult for traders and investors to ignore what looks like a genuine global economic slowdown." Signs of rising production illustrate the challenge facing the Organization of the Petroleum Exporting Countries and its allies including Russia, which are returning to supply restraint in 2019 to support the market. However, the energy minister for the United Arab Emirates, an OPEC member, said on Tuesday he remained optimistic about achieving a market balance in the first quarter.

Oil falls to $53 on economic worries, surging supply

Oil prices climbed on the last trading day of the year on Monday, taking a cue from firmer stock markets, but were on track for the first yearly decline in three years amid concerns of a persistent supply glut.

Hints of progress on a possible US-China trade deal helped bolster sentiment, which has been battered by concerns over a weaker global economic outlook.

Brent crude futures - the international benchmark for oil prices - rose 42 cents, or 0.per cent, to $53.63 a barrel by 0250 GMT. Brent declined nearly 20 per cent in 2018 following two years of growth.&nbsp;

US West Texas Intermediate (WTI) crude futures were at $45.65 a barrel, up 32 cents, or 0.7per cent, from their last close. WTI is down about 24 per cent this year.

Crude prices have been closely tracking equity markets during volatile trading for both asset classes last week.&nbsp;

"Investors are looking for bargains in an illiquid market (today)... If Trump gets over trade issues with China expect economic demand to surge," said Jonathan Barratt, chief investment officer at Probis Securities in Sydney.

US President Donald Trump said he had a "long and very good call" with Chinese President Xi Jinping and that a possible trade deal between the United States and China was progressing well.

"China is still the best bet for global economic growth. Anything that severely pinches China will inevitably hurt global growth and, as a consequence, oil consumption," said Sukrit Vijayakar, director of energy consultancy Trifecta.

The current downward pressure on oil prices should likely taper off from January, when OPEC-led supply cuts commence, analysts said.

Earlier this month, the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, agreed to curb output by 1.2 million barrels per day starting in January to clear a supply overhang and prop up prices.

The group of producers "may hold out on supplies longer than reasonable in order to see if they can effect a rally similar to September-October this year," Vijayakar said.

Meanwhile, imports of Iranian crude oil by major buyers in Asia hit their lowest in more than five years in November as US sanctions on Iran`s oil exports took effect last month.

Asia`s imports from Iran are set to rise again in December after the US granted temporary waivers to some countries, but is not known how much Iran will be able to export once the waivers expire around the start of May.

"We postulate for a gentle recovery for oil prices into the first quarter of 2019 though marked volatility can snap oil prices south in lieu of market uncertainties and key events such as Brexit, US-China trade truce deal, US monetary policy, US-Iran sanctions," said Benjamin Lu Jiaxuan, commodities analyst at Singapore-based brokerage firm Phillip Futures.

Energy companies in the United States, currently the world`s biggest oil producer, added two oil drilling rigs in the week to December 28, General Electric Co`s Baker Hughes unit said on Friday. That was up from 747 a year ago. The rig count is used as an indicator for future output.

Oil prices climbed on the last trading day of the year on Monday, taking a cue from firmer stock markets, but were on track for the first yearly decline in three years amid concerns of a persistent supply glut.

Oil prices climbed on the last trading day of the year on Monday, taking a cue from firmer stock markets, but were on track for the first yearly decline in three years amid concerns of a persistent supply glut. Hints of progress on a possible US-China trade deal helped bolster sentiment, which has been battered by concerns over a weaker global economic outlook. Brent crude futures - the international benchmark for oil prices - rose 42 cents, or 0.per cent, to $53.63 a barrel by 0250 GMT. Brent declined nearly 20 per cent in 2018 following two years of growth. US West Texas Intermediate (WTI) crude futures were at $45.65 a barrel, up 32 cents, or 0.7per cent, from their last close. WTI is down about 24 per cent this year. Crude prices have been closely tracking equity markets during volatile trading for both asset classes last week. "Investors are looking for bargains in an illiquid market (today)... If Trump gets over trade issues with China expect economic demand to surge," said Jonathan Barratt, chief investment officer at Probis Securities in Sydney. US President Donald Trump said he had a "long and very good call" with Chinese President Xi Jinping and that a possible trade deal between the United States and China was progressing well. "China is still the best bet for global economic growth. Anything that severely pinches China will inevitably hurt global growth and, as a consequence, oil consumption," said Sukrit Vijayakar, director of energy consultancy Trifecta. The current downward pressure on oil prices should likely taper off from January, when OPEC-led supply cuts commence, analysts said. Earlier this month, the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, agreed to curb output by 1.2 million barrels per day starting in January to clear a supply overhang and prop up prices. The group of producers "may hold out on supplies longer than reasonable in order to see if they can effect a rally similar to September-October this year," Vijayakar said. Meanwhile, imports of Iranian crude oil by major buyers in Asia hit their lowest in more than five years in November as US sanctions on Iran`s oil exports took effect last month. Asia`s imports from Iran are set to rise again in December after the US granted temporary waivers to some countries, but is not known how much Iran will be able to export once the waivers expire around the start of May. "We postulate for a gentle recovery for oil prices into the first quarter of 2019 though marked volatility can snap oil prices south in lieu of market uncertainties and key events such as Brexit, US-China trade truce deal, US monetary policy, US-Iran sanctions," said Benjamin Lu Jiaxuan, commodities analyst at Singapore-based brokerage firm Phillip Futures. Energy companies in the United States, currently the world`s biggest oil producer, added two oil drilling rigs in the week to December 28, General Electric Co`s Baker Hughes unit said on Friday. That was up from 747 a year ago. The rig count is used as an indicator for future output.

Oil prices set for first annual decline since 2015

<a href="http://www.wionews.com/world/oil-prices-rise-as-opec-output-cuts-seen-deeper-than-previously-expected-185630">Oil prices</a> were mixed in thin trading on Wednesday as the US&nbsp;benchmark rebounded from steep losses in the previous session, even though concern over the health of the global economy continued to overshadow the market in the longer term.

US&nbsp;West Texas Intermediate (WTI) crude futures, were up 29 cents, or 0.68 per cent, at $42.82 per barrel, at 0355 GMT, having at one point risen as high as 2 per cent from the last close. They had slumped 6.7 per cent in the previous session to $42.53 a barrel - the lowest since June 2017.

Meanwhile, Brent crude oil futures were down 11 cents or 0.22 per cent at $50.36 a barrel, having skidded 6.2 per cent in the previous session to $50.47 a barrel, the weakest since August 2017.

"$50 is a psychological support level (for Brent)," said Margaret Yang, market analyst for CMC Markets in Singapore.

"But market confidence needs to be restored for oil price...that includes an equity market rebound and/or a bigger production cut from major oil exporters," Yang said, referring to an OPEC-led agreement to lower output from next month.

Broader financial markets have been under pressure on worries about a global economic slowdown amid higher US&nbsp;interest rates and the US-China trade dispute.

"US&nbsp;equity futures are trading a bit firmer this morning triggering some little buying interest in the oil markets," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

But Innes added macroeconomics fears will continue unless the Organization of the Petroleum Exporting Countries (OPEC) "reassures markets the viability of their supply cuts and even impose deeper ones as some members have suggested". OPEC and allies led by Russia agreed this month to cut oil production by 1.2 million barrels per day from January.

Russian Energy Minister Alexander Novak said on Tuesday that oil prices would become more stable in the first half of 2019, supported by OPEC and non-OPEC countries' joint efforts to cut output.

Elsewhere, US&nbsp;political turmoil triggered by the partial shutdown of the federal government is also adding to market concerns. President Donald&nbsp;Trump&nbsp;said on Tuesday that shutdown could last until his demand for US-Mexico border wall money is met.

Oil prices were mixed in thin trading on Wednesday as the US benchmark rebounded from steep losses in the previous session, even though concern over the health of the global economy continued to overshadow the market in the longer term.

Oil prices were mixed in thin trading on Wednesday as the US benchmark rebounded from steep losses in the previous session, even though concern over the health of the global economy continued to overshadow the market in the longer term. US West Texas Intermediate (WTI) crude futures, were up 29 cents, or 0.68 per cent, at $42.82 per barrel, at 0355 GMT, having at one point risen as high as 2 per cent from the last close. They had slumped 6.7 per cent in the previous session to $42.53 a barrel - the lowest since June 2017. Meanwhile, Brent crude oil futures were down 11 cents or 0.22 per cent at $50.36 a barrel, having skidded 6.2 per cent in the previous session to $50.47 a barrel, the weakest since August 2017. "$50 is a psychological support level (for Brent)," said Margaret Yang, market analyst for CMC Markets in Singapore. "But market confidence needs to be restored for oil price...that includes an equity market rebound and/or a bigger production cut from major oil exporters," Yang said, referring to an OPEC-led agreement to lower output from next month. Broader financial markets have been under pressure on worries about a global economic slowdown amid higher US interest rates and the US-China trade dispute. "US equity futures are trading a bit firmer this morning triggering some little buying interest in the oil markets," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore. But Innes added macroeconomics fears will continue unless the Organization of the Petroleum Exporting Countries (OPEC) "reassures markets the viability of their supply cuts and even impose deeper ones as some members have suggested". OPEC and allies led by Russia agreed this month to cut oil production by 1.2 million barrels per day from January. Russian Energy Minister Alexander Novak said on Tuesday that oil prices would become more stable in the first half of 2019, supported by OPEC and non-OPEC countries' joint efforts to cut output. Elsewhere, US political turmoil triggered by the partial shutdown of the federal government is also adding to market concerns. President Donald Trump said on Tuesday that shutdown could last until his demand for US-Mexico border wall money is met.

US  oil prices rebound after tumbling to lowest since June 2017 on economy fears

Oil edged up to $51 a barrel on Wednesday after reaching its lowest since June 2017 on perceptions that a price slide prompted by worries over the global economy had been overdone amid an OPEC-led effort to tighten supply.

Crude has been caught up in wider financial market weakness as the <a href="http://www.wionews.com/world/us-government-shutdown-may-go-into-new-year-top-trump-aide-mulvaney-186044">US&nbsp;government shutdown</a>, higher US&nbsp;interest rates and the US-China trade dispute unnerved investors and exacerbated worries over global growth.

Brent crude, the global benchmark, was up 43 cents at $50.90 at 0949 GMT. It earlier fell to $49.93, the lowest since July 2017, and posted a 6.2 per cent slide in the previous session.

US&nbsp;crude was up 74 cents at $43.27.

"I think there is a little bit of over-extension to the downside linked to global market fears," said Olivier Jakob, an analyst at Petromatrix. "It's all about equities."

"OPEC has shown it wants higher prices and is working towards that goal."

Trade was thin due to the Christmas holidays. Asian stock markets retreated again on Wednesday. Markets in Britain, Germany and France will remain closed on Wednesday.

While economic worries have weighed, the outlook is not as weak as in 2016 when a supply glut built up because the Organization of the Petroleum Exporting Countries this time is trying to prop up the market, Jakob said.

Concerned that a new glut could form, OPEC and its allies including Russia decided earlier this month to return to a policy of cutting production in 2019, unwinding a decision taken in June 2018 to pump more oil.

The producers' alliance, known as OPEC+, plans to lower output by 1.2 million barrels per day, of which OPEC's share is 800,000 bpd, next year, and some ministers have even suggested taking further action.

Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore, said some buying interest had returned after firmer trading in US equity futures.

But, he added, economic worries will continue to weigh unless OPEC reassures the market as to the viability of the supply cuts and "even imposes deeper ones as some members have suggested".

Oil edged up to $51 a barrel on Wednesday after reaching its lowest since June 2017 on perceptions that a price slide prompted by worries over the global economy had been overdone amid an OPEC-led effort to tighten supply.

Oil edged up to $51 a barrel on Wednesday after reaching its lowest since June 2017 on perceptions that a price slide prompted by worries over the global economy had been overdone amid an OPEC-led effort to tighten supply. Crude has been caught up in wider financial market weakness as the US government shutdown, higher US interest rates and the US-China trade dispute unnerved investors and exacerbated worries over global growth. Brent crude, the global benchmark, was up 43 cents at $50.90 at 0949 GMT. It earlier fell to $49.93, the lowest since July 2017, and posted a 6.2 per cent slide in the previous session. US crude was up 74 cents at $43.27. "I think there is a little bit of over-extension to the downside linked to global market fears," said Olivier Jakob, an analyst at Petromatrix. "It's all about equities." "OPEC has shown it wants higher prices and is working towards that goal." Trade was thin due to the Christmas holidays. Asian stock markets retreated again on Wednesday. Markets in Britain, Germany and France will remain closed on Wednesday. While economic worries have weighed, the outlook is not as weak as in 2016 when a supply glut built up because the Organization of the Petroleum Exporting Countries this time is trying to prop up the market, Jakob said. Concerned that a new glut could form, OPEC and its allies including Russia decided earlier this month to return to a policy of cutting production in 2019, unwinding a decision taken in June 2018 to pump more oil. The producers' alliance, known as OPEC+, plans to lower output by 1.2 million barrels per day, of which OPEC's share is 800,000 bpd, next year, and some ministers have even suggested taking further action. Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore, said some buying interest had returned after firmer trading in US equity futures. But, he added, economic worries will continue to weigh unless OPEC reassures the market as to the viability of the supply cuts and "even imposes deeper ones as some members have suggested".

Oil rises to $51 after steep slide; growth fears weigh

<a href="http://www.wionews.com/world/oil-prices-rise-as-opec-output-cuts-seen-deeper-than-previously-expected-185630">Oil prices</a> edged up on Monday after evidence that a recent fall to 15-month lows may be affecting output in the United States, the world`s largest producer, although concern about the outlook for demand tempered gains.

Brent crude futures were up 12 cents at $53.94 a barrel by 0858 GMT, while US crude futures lost 3 cents to $45.56.

Brent fell 11 per cent last week and hit its lowest since September 2017, while US&nbsp;futures slid to their lowest since July 2017, bringing the decline in the two contracts to 35 per cent so far this quarter.

The price drop has caused US&nbsp;shale oil producers to curtail drilling plans for next year.&nbsp;

The boom in shale output has made the United States the world's largest oil producer, overtaking Saudi Arabia and Russia.

Physical prices for Brent have also fallen in the last six weeks, driven by a drop in demand from Chinese refiners in particular, which has weighed on the value of barrels of anything from the North Sea to Nigerian crude.&nbsp;

"The recent weakness in the physical Brent structure can be attributed to a broader easing of purchases by Asian refiners at this point, with lower-end-Q1 intake weighing on spot assessments, and we can expect this pressure to carry through over the coming weeks," consultancy JBC Energy said in a report.&nbsp;

Still, the macroeconomic picture and its impact on oil demand continue to pressure prices. Global equities have fallen nearly 9.5 per cent so far in December, their biggest one-month slide since September 2011, when the eurozone debt crisis was unfolding.&nbsp;

The trade dispute between the United States and China and the prospect of a rapid rise in US interest rates have brought global stocks down from this year`s record highs and ignited concern that oil demand will be insufficient to soak up any excess supply.

The <a href="http://www.wionews.com/world/oil-prices-rise-on-asian-stock-rally-opec-led-cuts-183404">Organization of the Petroleum Exporting Countries</a> and allies led by Russia agreed this month to cut oil production by 1.2 million barrels per day from January.

Should that fail to balance the market, OPEC and its allies will hold an extraordinary meeting, United Arab Emirates Energy Minister Suhail al-Mazrouei said on Sunday.

"Oil ministers are already taking to the airwaves with a `price stability at all cost` mantra," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

Oil prices edged up on Monday after evidence that a recent fall to 15-month lows may be affecting output in the United States, the world`s largest producer, although concern about the outlook for demand tempered gains.

Oil prices edged up on Monday after evidence that a recent fall to 15-month lows may be affecting output in the United States, the world`s largest producer, although concern about the outlook for demand tempered gains. Brent crude futures were up 12 cents at $53.94 a barrel by 0858 GMT, while US crude futures lost 3 cents to $45.56. Brent fell 11 per cent last week and hit its lowest since September 2017, while US futures slid to their lowest since July 2017, bringing the decline in the two contracts to 35 per cent so far this quarter. The price drop has caused US shale oil producers to curtail drilling plans for next year. The boom in shale output has made the United States the world's largest oil producer, overtaking Saudi Arabia and Russia. Physical prices for Brent have also fallen in the last six weeks, driven by a drop in demand from Chinese refiners in particular, which has weighed on the value of barrels of anything from the North Sea to Nigerian crude. "The recent weakness in the physical Brent structure can be attributed to a broader easing of purchases by Asian refiners at this point, with lower-end-Q1 intake weighing on spot assessments, and we can expect this pressure to carry through over the coming weeks," consultancy JBC Energy said in a report. Still, the macroeconomic picture and its impact on oil demand continue to pressure prices. Global equities have fallen nearly 9.5 per cent so far in December, their biggest one-month slide since September 2011, when the eurozone debt crisis was unfolding. The trade dispute between the United States and China and the prospect of a rapid rise in US interest rates have brought global stocks down from this year`s record highs and ignited concern that oil demand will be insufficient to soak up any excess supply. The Organization of the Petroleum Exporting Countries and allies led by Russia agreed this month to cut oil production by 1.2 million barrels per day from January. Should that fail to balance the market, OPEC and its allies will hold an extraordinary meeting, United Arab Emirates Energy Minister Suhail al-Mazrouei said on Sunday. "Oil ministers are already taking to the airwaves with a `price stability at all cost` mantra," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

Oil prices inch up, but concern over demand limits gains

Oil prices climbed on Friday after tumbling 5 per cent in the previous session on signs&nbsp;<a href="http://www.wionews.com/world/oil-prices-rise-on-asian-stock-rally-opec-led-cuts-183404">OPEC's production cuts</a> that start next month will be deeper than expected.

Benchmark Brent crude futures were up 27 cents, or 0.5 per cent, at $54.62 per barrel at 0448 GMT, after dropping $2.89 in the previous session. Brent is set to drop 9.4 per cent for the week.

US&nbsp;West Texas Intermediate (WTI) crude futures rose 33 cents, or 0.7 per cent, to $46.22 per barrel. WTI is set to decline by about 9.5 per cent for the week.

Crude prices have fallen along with major equity markets as investors fret about the strength of the global economy heading into next year. Further concerns were raised as the United States, the world's biggest oil consumer, may have a government shutdown later on Friday.

The Organization of the Petroleum Exporting Countries (OPEC) plans to release a table detailing output cut quotas for its members and allies such as Russia in an effort to shore up the price of crude,&nbsp;OPEC's secretary-general Mohammad Barkindo said in a letter reviewed by Reuters on Thursday.

Barkindo said to reach the proposed cut of 1.2 million barrels per day, the effective reduction for member countries was 3.02 per cent.

That is higher than the initially discussed 2.5 per cent as&nbsp;OPEC&nbsp;seeks to accommodate Iran, Libya and Venezuela, which are exempt from any requirement to cut.

"The current oil prices will force&nbsp;OPEC&nbsp;to increase compliance with the production cut deals, supporting Brent prices," said Wang Xiao, head of crude research at Guotai Junan futures.

"The temporary recovery in prices has been driven by short- sellers buying back," said Wang, referring to investors buying futures to close out positions that profit from falling oil prices.

WTI and Brent futures are down more than 30 per cent from their peak in October on concerns of oil demand will drop because of a slowing global economy and signs of a supply glut.

Stephen Innes, head of trading for Asia-Pacific at OANDA said in a note that market volatility was "getting exaggerated by immensely thin liquidity conditions, risk sentiment, and holiday market participation".

Oil prices climbed on Friday after tumbling 5 per cent in the previous session on signs OPEC's production cuts that start next month will be deeper than expected.

Oil prices climbed on Friday after tumbling 5 per cent in the previous session on signs OPEC's production cuts that start next month will be deeper than expected. Benchmark Brent crude futures were up 27 cents, or 0.5 per cent, at $54.62 per barrel at 0448 GMT, after dropping $2.89 in the previous session. Brent is set to drop 9.4 per cent for the week. US West Texas Intermediate (WTI) crude futures rose 33 cents, or 0.7 per cent, to $46.22 per barrel. WTI is set to decline by about 9.5 per cent for the week. Crude prices have fallen along with major equity markets as investors fret about the strength of the global economy heading into next year. Further concerns were raised as the United States, the world's biggest oil consumer, may have a government shutdown later on Friday. The Organization of the Petroleum Exporting Countries (OPEC) plans to release a table detailing output cut quotas for its members and allies such as Russia in an effort to shore up the price of crude, OPEC's secretary-general Mohammad Barkindo said in a letter reviewed by Reuters on Thursday. Barkindo said to reach the proposed cut of 1.2 million barrels per day, the effective reduction for member countries was 3.02 per cent. That is higher than the initially discussed 2.5 per cent as OPEC seeks to accommodate Iran, Libya and Venezuela, which are exempt from any requirement to cut. "The current oil prices will force OPEC to increase compliance with the production cut deals, supporting Brent prices," said Wang Xiao, head of crude research at Guotai Junan futures. "The temporary recovery in prices has been driven by short- sellers buying back," said Wang, referring to investors buying futures to close out positions that profit from falling oil prices. WTI and Brent futures are down more than 30 per cent from their peak in October on concerns of oil demand will drop because of a slowing global economy and signs of a supply glut. Stephen Innes, head of trading for Asia-Pacific at OANDA said in a note that market volatility was "getting exaggerated by immensely thin liquidity conditions, risk sentiment, and holiday market participation".

Oil prices rise over OPEC output cuts

Oil prices were largely steady on Monday after falling 2 per cent in the previous session but remained under pressure amid weaker growth in major economies and concerns about oversupply.

International Brent crude oil futures were at $60.33 per barrel at 0423 GMT, up 5 cents, or 0.08 per cent, from their last close.

US West Texas Intermediate (WTI) crude futures were at $51.33 per barrel, up 13 cents, or 0.25 per cent.

Persistent growth in US shale output continues to weigh on oil prices, while some analysts doubted that planned supply cuts led by the Organization of the Petroleum Exporting Countries would be enough to rebalance markets.

"I don't believe OPEC cuts will work this time around with Qatar going out and Iran refusing to cut, while there's a big question mark when Russia will go to its agreed level," said Sukrit Vijayakar, director of oil consultancy Trifecta.

"Meanwhile, US production will go on increasing. So the whole load will effectively be on Saudi Arabia, who is under severe pressure from Trump anyway."

OPEC and its Russia-led allies have agreed to curb output from January, in a move to be reviewed at a meeting in April. Saudi Arabia is OPEC's de facto leader.

Meanwhile, increasing concerns about weakening growth in major markets such as China and Europe also dampened the mood in oil and other asset classes.

Chinese oil refinery throughput in November fell from October, suggesting an easing in oil demand, while the country's industrial output rose the least in nearly three years as the economy continued to lose momentum.

French business activity plunged unexpectedly into contraction this month, retreating at the fastest pace in over four years, while Germany's private sector expansion slowed to a four-year low in December.

But oil prices were supported after General Electric Co's Baker Hughes energy services firm said on Friday that US drillers cut four oil rigs in the week to December 14, pulling the total count to the lowest since mid-October at 873.

However, the current US rig count, which serves as an early indicator of future output, is higher than a year ago when 747 rigs were active.

"The potential for a significant movement in the US dollar clearly has an impact on oil pricing with the Fed meeting (this week)," said Michael McCarthy, chief markets strategist at CMC Markets.

"We're looking outside the oil markets for its next major move."

The US Federal Open Market Committee (FOMC) is set to start a two-day meeting on Tuesday.

Oil prices were largely steady on Monday after falling 2 per cent in the previous session but remained under pressure amid weaker growth in major economies and concerns about oversupply.

Oil prices were largely steady on Monday after falling 2 per cent in the previous session but remained under pressure amid weaker growth in major economies and concerns about oversupply. International Brent crude oil futures were at $60.33 per barrel at 0423 GMT, up 5 cents, or 0.08 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $51.33 per barrel, up 13 cents, or 0.25 per cent. Persistent growth in US shale output continues to weigh on oil prices, while some analysts doubted that planned supply cuts led by the Organization of the Petroleum Exporting Countries would be enough to rebalance markets. "I don't believe OPEC cuts will work this time around with Qatar going out and Iran refusing to cut, while there's a big question mark when Russia will go to its agreed level," said Sukrit Vijayakar, director of oil consultancy Trifecta. "Meanwhile, US production will go on increasing. So the whole load will effectively be on Saudi Arabia, who is under severe pressure from Trump anyway." OPEC and its Russia-led allies have agreed to curb output from January, in a move to be reviewed at a meeting in April. Saudi Arabia is OPEC's de facto leader. Meanwhile, increasing concerns about weakening growth in major markets such as China and Europe also dampened the mood in oil and other asset classes. Chinese oil refinery throughput in November fell from October, suggesting an easing in oil demand, while the country's industrial output rose the least in nearly three years as the economy continued to lose momentum. French business activity plunged unexpectedly into contraction this month, retreating at the fastest pace in over four years, while Germany's private sector expansion slowed to a four-year low in December. But oil prices were supported after General Electric Co's Baker Hughes energy services firm said on Friday that US drillers cut four oil rigs in the week to December 14, pulling the total count to the lowest since mid-October at 873. However, the current US rig count, which serves as an early indicator of future output, is higher than a year ago when 747 rigs were active. "The potential for a significant movement in the US dollar clearly has an impact on oil pricing with the Fed meeting (this week)," said Michael McCarthy, chief markets strategist at CMC Markets. "We're looking outside the oil markets for its next major move." The US Federal Open Market Committee (FOMC) is set to start a two-day meeting on Tuesday.

Oil prices pressured by oversupply, global economic concerns

Oil prices fell on Friday as investors cashed in gains of more than 2 per cent made during the previous session on concerns demand may slump amid slowing economic growth, though there are still expectations for producer supply cuts to support prices.

China, the world's second-largest economy and the largest crude importer, on Friday, reported some of the slowest retail sales and industrial output growth in years for November, highlighting the risks of the country's trade dispute with the United States.

Oil refinery throughput in November in China fell from October, which was the second-highest month on record, suggesting an easing in Chinese oil demand, though runs were 2.9 per cent higher than a year earlier.

However, some support for prices remains because of the output cuts agreed between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers including Russia. That could create a supply deficit by the second quarter of next year, the International Energy Agency (IEA) said on Thursday.

Brent crude oil futures were at $61.09 per barrel at 0353 GMT, down 36 cents, or 0.6 per cent, from their last close.

US&nbsp;West Texas Intermediate (WTI) crude futures were at $52.47 per barrel, down 11 cents, or 0.2 per cent, from their last settlement.

"I think after the big moves overnight there's a little bit of self-shock among traders, volumes are well down... I don't see a great deal of follow through on last night's moves," said Michael McCarthy, chief markets strategist at CMC Markets.

International benchmark Brent crude rose 2.2 per cent on Thursday, while WTI climbed 2.8 per cent.

"After the big move yesterday, it's a little bit of consolidation that's happening," said Jonathan Barratt, chief investment officer at Probis Securities in Sydney.

For the week, however, Brent is set to drop 0.9 per cent and WTI is set to fall 0.3 per cent.

As a part of the OPEC supply-cutting deal agreed last week, its de facto leader Saudi Arabia plans to reduce its output to 10.2 million barrels per day (bpd) in January.

In China, refineries processed 50.46 million tonnes of crude oil last month, or 12.28 million bpd, up 2.9 per cent from the same month last year, the National Bureau of Statistics reported.

However, that is down from October and from the record of 12.49 million bpd reported in September.

Still for the first 11 months of the year, refinery output gained 7.2 per cent to 554.48 million tonnes, or 12.12 million bpd, on track for an annual record.

Oil prices fell on Friday as investors cashed in gains of more than 2 per cent made during the previous session on concerns demand may slump amid slowing economic growth, though there are still expectations for producer supply cuts to support prices.

Oil prices fell on Friday as investors cashed in gains of more than 2 per cent made during the previous session on concerns demand may slump amid slowing economic growth, though there are still expectations for producer supply cuts to support prices. China, the world's second-largest economy and the largest crude importer, on Friday, reported some of the slowest retail sales and industrial output growth in years for November, highlighting the risks of the country's trade dispute with the United States. Oil refinery throughput in November in China fell from October, which was the second-highest month on record, suggesting an easing in Chinese oil demand, though runs were 2.9 per cent higher than a year earlier. However, some support for prices remains because of the output cuts agreed between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers including Russia. That could create a supply deficit by the second quarter of next year, the International Energy Agency (IEA) said on Thursday. Brent crude oil futures were at $61.09 per barrel at 0353 GMT, down 36 cents, or 0.6 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $52.47 per barrel, down 11 cents, or 0.2 per cent, from their last settlement. "I think after the big moves overnight there's a little bit of self-shock among traders, volumes are well down... I don't see a great deal of follow through on last night's moves," said Michael McCarthy, chief markets strategist at CMC Markets. International benchmark Brent crude rose 2.2 per cent on Thursday, while WTI climbed 2.8 per cent. "After the big move yesterday, it's a little bit of consolidation that's happening," said Jonathan Barratt, chief investment officer at Probis Securities in Sydney. For the week, however, Brent is set to drop 0.9 per cent and WTI is set to fall 0.3 per cent. As a part of the OPEC supply-cutting deal agreed last week, its de facto leader Saudi Arabia plans to reduce its output to 10.2 million barrels per day (bpd) in January. In China, refineries processed 50.46 million tonnes of crude oil last month, or 12.28 million bpd, up 2.9 per cent from the same month last year, the National Bureau of Statistics reported. However, that is down from October and from the record of 12.49 million bpd reported in September. Still for the first 11 months of the year, refinery output gained 7.2 per cent to 554.48 million tonnes, or 12.12 million bpd, on track for an annual record.

Oil prices fall as investors take profits amid China economy worries

US 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.

US West Texas Intermediate (WTI) crude futures were at $51.27 per barrel at 0020 GMT, up 0.23 per cent from their last settlement.

International Brent crude oil futures had yet to trade.

"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 US crude stockpiles, though less than expected, has helped boost sentiment, analysts said.

US crude inventories fell by 1.2 million barrels in the week to December 7, compared with market expectations for a decrease of 3 million barrels.&nbsp;

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 US output.

"Oil markets have been concerned about the possibility of weaker macroeconomic and oil demand growth; when combined with booming US 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 has hit a record 11.7 million bpd, is set to end 2018 as the world's top oil producer, ahead of Russia and Saudi Arabia.

US 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.

US 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. US West Texas Intermediate (WTI) crude futures were at $51.27 per barrel at 0020 GMT, up 0.23 per cent from their last settlement. International Brent crude oil futures had yet to trade. "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 US crude stockpiles, though less than expected, has helped boost sentiment, analysts said. US crude inventories fell by 1.2 million barrels in the week to December 7, compared with market expectations for a decrease of 3 million barrels. 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 US output. "Oil markets have been concerned about the possibility of weaker macroeconomic and oil demand growth; when combined with booming US 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 has hit a record 11.7 million bpd, is set to end 2018 as the world's top oil producer, ahead of Russia and Saudi Arabia.

US oil prices inch up amid stockpile drop, signs of easing trade tensions

<a href="http://www.wionews.com/business-economy/oil-extends-gains-after-opec-led-group-seals-deal-to-cut-supply-182778">Oil prices</a> remained on shaky ground on Tuesday after sliding by 3 per cent the previous day, pressured by weakness in global stock markets and doubts that planned supply cuts led by producer club OPEC will be enough to rein in oversupply.

US West Texas Intermediate (WTI) crude futures were at $51 per barrel at 0028 GMT, unchanged from their last close.

International Brent crude oil futures had yet to trade.

Crude prices dropped by 3 per cent the session before amid ongoing weakness in global stock markets and concerns that slowing oil demand-growth could erode supply cuts announced last week by the Organisation of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including Russia.

Crude prices are down around a third since early October amid the financial market slump and an emerging oil supply overhang.

"There remains a lot of uncertainty if the production cut is thick enough to make a significant dent in global supply," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

"The general risk-off tone in global markets and the stronger dollar ... are contributing to the selling pressure."

The OPEC-led group of oil producers last Friday announced a supply cut of 1.2 million barrels per day (bpd) in crude oil supply from January, measured against October 2018 output levels.

Oil prices remained on shaky ground on Tuesday after sliding by 3 per cent the previous day, pressured by weakness in global stock markets and doubts that planned supply cuts led by producer club OPEC will be enough to rein in oversupply.

Oil prices remained on shaky ground on Tuesday after sliding by 3 per cent the previous day, pressured by weakness in global stock markets and doubts that planned supply cuts led by producer club OPEC will be enough to rein in oversupply. US West Texas Intermediate (WTI) crude futures were at $51 per barrel at 0028 GMT, unchanged from their last close. International Brent crude oil futures had yet to trade. Crude prices dropped by 3 per cent the session before amid ongoing weakness in global stock markets and concerns that slowing oil demand-growth could erode supply cuts announced last week by the Organisation of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including Russia. Crude prices are down around a third since early October amid the financial market slump and an emerging oil supply overhang. "There remains a lot of uncertainty if the production cut is thick enough to make a significant dent in global supply," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore. "The general risk-off tone in global markets and the stronger dollar ... are contributing to the selling pressure." The OPEC-led group of oil producers last Friday announced a supply cut of 1.2 million barrels per day (bpd) in crude oil supply from January, measured against October 2018 output levels.

Oil prices on shaky ground amid global financial market worries

Oil fell on Wednesday as a swelling supply glut and signs of an economic slowdown weighed on crude prices a day ahead of an OPEC meeting at which the producer club is expected to decide supply cuts.

International Brent crude oil futures were at $61.16 per barrel at 0757 GMT, down 92 cents, or 1.5 per cent, from their last close.

US West Texas Intermediate (WTI) crude futures were at $52.40 per barrel, down 85 cents, or 1.6 per cent.

Oil prices were pressured by a weekly report from the American Petroleum Institute (API) that said US crude inventories rose by 5.4 million barrels in the week to November 30, to 448 million barrels, in a sign that US oil markets are in a growing glut.

Official US government oil production and inventory data are due later on Wednesday.

In the Middle East, Saudi Arabia produced a record 11.3 million barrels per day (bpd) in November, adding to the swelling glut.

The supply overhang will be the focus of a meeting of the Organisation of the Petroleum Exporting Countries (OPEC) on Thursday, at which the producer group is expected to decide some form of supply cut aimed at supporting crude prices.

In the latest sign of a clogged market, Asian gasoline refining margins have plunged to their weakest levels in seven years - so low that churning out this key motor fuel has become a loss-making business.

GLOOMY MARKETS

The slide in US oil followed a tumble in global stock markets on Tuesday and Wednesday, with investors worried about the threat of a widespread economic slowdown.

Key to the global economic outlook will be whether the United States and China can resolve their trade disputes. Washington and Beijing announced a 90-day truce last weekend, during which neither side will further increase punitive import tariffs.

In a sign of easing tensions between the world's two biggest economies, Chinese oil trader Unipec plans to resume US crude shipments to China by March after the Xi-Trump deal at the G20 meeting reduced the risk of tariffs being imposed on these imports, people with knowledge of the matter said.

Yet the truce may not last. US President Donald Trump threatened on Tuesday to place "major tariffs" on Chinese goods imported into the United States if his administration didn't reach a desirable deal with Beijing.

China's state council on Wednesday issued guidance to support employment as the economy slows, saying the country should pay "high attention" to the impact on employment from increasing economic headwinds.

Bank of America Merrill Lynch said in its 2019 economic outlook, published on Tuesday, that "most major economies are likely to see decelerating activity", although it added that "a steady stream of monetary and fiscal stimulus measures" was expected to stem the slowdown.

In Asian powerhouse Japan, the economy is expected to have contracted more again in the third quarter, with the slowdown deepening, a poll showed on Wednesday, with Q3 annualised GDP expected to fall by 1.9 per cent.

A slowing economy may further undermine oil prices.

Bank of America said it expected Brent and WTI prices to average $70 and $59 per barrel respectively in 2019.

Brent and WTI have averaged $72.80 and $66.10 per barrel so far this year.

Oil fell on Wednesday as a swelling supply glut and signs of an economic slowdown weighed on crude prices a day ahead of an OPEC meeting at which the producer club is expected to decide supply cuts.

Oil fell on Wednesday as a swelling supply glut and signs of an economic slowdown weighed on crude prices a day ahead of an OPEC meeting at which the producer club is expected to decide supply cuts. International Brent crude oil futures were at $61.16 per barrel at 0757 GMT, down 92 cents, or 1.5 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $52.40 per barrel, down 85 cents, or 1.6 per cent. Oil prices were pressured by a weekly report from the American Petroleum Institute (API) that said US crude inventories rose by 5.4 million barrels in the week to November 30, to 448 million barrels, in a sign that US oil markets are in a growing glut. Official US government oil production and inventory data are due later on Wednesday. In the Middle East, Saudi Arabia produced a record 11.3 million barrels per day (bpd) in November, adding to the swelling glut. The supply overhang will be the focus of a meeting of the Organisation of the Petroleum Exporting Countries (OPEC) on Thursday, at which the producer group is expected to decide some form of supply cut aimed at supporting crude prices. In the latest sign of a clogged market, Asian gasoline refining margins have plunged to their weakest levels in seven years - so low that churning out this key motor fuel has become a loss-making business. GLOOMY MARKETS The slide in US oil followed a tumble in global stock markets on Tuesday and Wednesday, with investors worried about the threat of a widespread economic slowdown. Key to the global economic outlook will be whether the United States and China can resolve their trade disputes. Washington and Beijing announced a 90-day truce last weekend, during which neither side will further increase punitive import tariffs. In a sign of easing tensions between the world's two biggest economies, Chinese oil trader Unipec plans to resume US crude shipments to China by March after the Xi-Trump deal at the G20 meeting reduced the risk of tariffs being imposed on these imports, people with knowledge of the matter said. Yet the truce may not last. US President Donald Trump threatened on Tuesday to place "major tariffs" on Chinese goods imported into the United States if his administration didn't reach a desirable deal with Beijing. China's state council on Wednesday issued guidance to support employment as the economy slows, saying the country should pay "high attention" to the impact on employment from increasing economic headwinds. Bank of America Merrill Lynch said in its 2019 economic outlook, published on Tuesday, that "most major economies are likely to see decelerating activity", although it added that "a steady stream of monetary and fiscal stimulus measures" was expected to stem the slowdown. In Asian powerhouse Japan, the economy is expected to have contracted more again in the third quarter, with the slowdown deepening, a poll showed on Wednesday, with Q3 annualised GDP expected to fall by 1.9 per cent. A slowing economy may further undermine oil prices. Bank of America said it expected Brent and WTI prices to average $70 and $59 per barrel respectively in 2019. Brent and WTI have averaged $72.80 and $66.10 per barrel so far this year.

Oil prices fall on swelling glut, economic growth concerns

In the past, when the United States imported most of its energy needs, declining oil prices were a bounty to households and businesses, according to a Dow Jones Newswires report.

A rule of thumb was simple: Oil-price drops boosted US economic output.

That's become more complicated. As the US has risen to become the world's largest oil producer this year, a growing chunk of domestic investment, manufacturing output and employment has become tied to oil.

Now, when oil prices fall, it risks hurting investment and hiring in important parts of the economy.

At the same time, a decades-long transition toward more energy-efficient living has left businesses and consumers less sensitive to prices at the pump, meaning they don't benefit as much when prices fall.

Some economists still believe lower oil prices are a net economic positive, but the resurgence of the US oil industry has upended the conventional wisdom held by many, including President Donald Trump, who has recently issued a flurry of tweets calling for even cheaper crude.

"Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let's go lower!" Trump tweeted on November 21.

Oil companies, setting capital-expenditure plans for the next year, could be spooked into cutting budgets if prices keep sliding. Crude oil futures have lost a third of their value in less than two months.

"He's living in the old world," Ian Shepherdson, chief economist at Pantheon Macroeconomics, said of Trump's comments in recent weeks cheering the price declines. "That's the very last thing he should be wishing for."

In the past, the US oil industry focused on the Gulf of Mexico, where massive deep-water wells required large up-front investments that pumped vast quantities of oil for a decade or more at relatively low operating costs.

Output was dominated by big companies such as Exxon Mobil Corp. and Royal Dutch Shell PLC, which carried little debt.

As a result, energy investment was relatively unresponsive to short-term price fluctuations, while a drop in gasoline prices immediately left consumers with more cash to save or spend on other goods and services.

Then the equation changed.

Fuel-efficient vehicles and a long transition away from heavy industry mean the US economy now consumes just 0.4 barrels of oil to produce $1,000 of gross domestic product, down from 1.1 barrels in 1972, said Martin Stuermer, a senior research economist at the Dallas Fed.

In contrast to the Gulf of Mexico's heyday, most US oil nowadays is extracted from a vast number of comparatively tiny deposits trapped in shale rock.

Since wells are exhausted quickly, the process requires near-constant drilling by a constellation of smaller companies that, compared to the traditional oil majors, use a lot of debt.

This makes both production and investment sensitive to lower prices, which can lead to sudden bankruptcies or declines in cash flow that squeeze investment plans.

Large shale-oil companies, such as EOG Resources Inc. and Whiting Petroleum Corp., have characterized the current price around $50 a barrel as an inflection point, below which they would reduce drilling.

"If oil went down to $40 and stayed there, yes, you would see a reduction in [spending] and a reduction in US production growth," said Chris Wright, the chief executive of Liberty Oilfield Services Inc., a hydraulic fracturing company that works for oil producers.

Economic data from the last big downturn in oil prices reflect the new dynamic. Months after oil prices began falling from their mid-2014 peak of $105 a barrel, drilling slowed.

By late 2016, private investment in oil and natural gas exploration and wells had fallen by two-thirds, and the oil-and-gas industry had shed nearly 190,000 jobs.

The negative effects of the price downturn were most acute in oil-producing regions like Texas and North Dakota, but national measures of business investment slowed, too, and overall expansion of GDP sputtered.

It's still difficult to map the complete footprint of oil in the US economy.

The Bureau of Economic Analysis estimates business investment in petroleum and natural gas structures at $137.48 billion annually.

While that's less than half of what consumers spend on gasoline and motor fuel - $324.51 billion - it includes none of the homes, hospitals and strip malls that pop up in regions that pump oil.

"A decline in oil prices now has negative spillovers to US aggregate investment," said Nida Cakir Melek, an economist at the Federal Reserve Bank of Kansas City.

Joseph Jaquez, who runs his family's store, Airlawn Furniture in Pecos, Texas, said the oil boom created a windfall for his business in the heart of the Permian basin when thousands of workers flocked to the area.

His sales of mattresses boomed to the temporary housing facilities that popped up in town.

"Our situation here in town is not one that many people can comprehend," Jaquez said.

Shepherdson, the economist, said it's not a coincidence that the 2014-16 period of falling oil prices was followed by a marked slowdown in broader economic growth. 
The recent price downturn, he estimates, will subtract 0.3 percentage points from US GDP growth over the next year or so.

In the past, when the United States imported most of its energy needs, declining oil prices were a bounty to households and businesses, according to a Dow Jones Newswires report.

In the past, when the United States imported most of its energy needs, declining oil prices were a bounty to households and businesses, according to a Dow Jones Newswires report. A rule of thumb was simple: Oil-price drops boosted US economic output. That's become more complicated. As the US has risen to become the world's largest oil producer this year, a growing chunk of domestic investment, manufacturing output and employment has become tied to oil. Now, when oil prices fall, it risks hurting investment and hiring in important parts of the economy. At the same time, a decades-long transition toward more energy-efficient living has left businesses and consumers less sensitive to prices at the pump, meaning they don't benefit as much when prices fall. Some economists still believe lower oil prices are a net economic positive, but the resurgence of the US oil industry has upended the conventional wisdom held by many, including President Donald Trump, who has recently issued a flurry of tweets calling for even cheaper crude. "Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let's go lower!" Trump tweeted on November 21. Oil companies, setting capital-expenditure plans for the next year, could be spooked into cutting budgets if prices keep sliding. Crude oil futures have lost a third of their value in less than two months. "He's living in the old world," Ian Shepherdson, chief economist at Pantheon Macroeconomics, said of Trump's comments in recent weeks cheering the price declines. "That's the very last thing he should be wishing for." In the past, the US oil industry focused on the Gulf of Mexico, where massive deep-water wells required large up-front investments that pumped vast quantities of oil for a decade or more at relatively low operating costs. Output was dominated by big companies such as Exxon Mobil Corp. and Royal Dutch Shell PLC, which carried little debt. As a result, energy investment was relatively unresponsive to short-term price fluctuations, while a drop in gasoline prices immediately left consumers with more cash to save or spend on other goods and services. Then the equation changed. Fuel-efficient vehicles and a long transition away from heavy industry mean the US economy now consumes just 0.4 barrels of oil to produce $1,000 of gross domestic product, down from 1.1 barrels in 1972, said Martin Stuermer, a senior research economist at the Dallas Fed. In contrast to the Gulf of Mexico's heyday, most US oil nowadays is extracted from a vast number of comparatively tiny deposits trapped in shale rock. Since wells are exhausted quickly, the process requires near-constant drilling by a constellation of smaller companies that, compared to the traditional oil majors, use a lot of debt. This makes both production and investment sensitive to lower prices, which can lead to sudden bankruptcies or declines in cash flow that squeeze investment plans. Large shale-oil companies, such as EOG Resources Inc. and Whiting Petroleum Corp., have characterized the current price around $50 a barrel as an inflection point, below which they would reduce drilling. "If oil went down to $40 and stayed there, yes, you would see a reduction in [spending] and a reduction in US production growth," said Chris Wright, the chief executive of Liberty Oilfield Services Inc., a hydraulic fracturing company that works for oil producers. Economic data from the last big downturn in oil prices reflect the new dynamic. Months after oil prices began falling from their mid-2014 peak of $105 a barrel, drilling slowed. By late 2016, private investment in oil and natural gas exploration and wells had fallen by two-thirds, and the oil-and-gas industry had shed nearly 190,000 jobs. The negative effects of the price downturn were most acute in oil-producing regions like Texas and North Dakota, but national measures of business investment slowed, too, and overall expansion of GDP sputtered. It's still difficult to map the complete footprint of oil in the US economy. The Bureau of Economic Analysis estimates business investment in petroleum and natural gas structures at $137.48 billion annually. While that's less than half of what consumers spend on gasoline and motor fuel - $324.51 billion - it includes none of the homes, hospitals and strip malls that pop up in regions that pump oil. "A decline in oil prices now has negative spillovers to US aggregate investment," said Nida Cakir Melek, an economist at the Federal Reserve Bank of Kansas City. Joseph Jaquez, who runs his family's store, Airlawn Furniture in Pecos, Texas, said the oil boom created a windfall for his business in the heart of the Permian basin when thousands of workers flocked to the area. His sales of mattresses boomed to the temporary housing facilities that popped up in town. "Our situation here in town is not one that many people can comprehend," Jaquez said. Shepherdson, the economist, said it's not a coincidence that the 2014-16 period of falling oil prices was followed by a marked slowdown in broader economic growth. The recent price downturn, he estimates, will subtract 0.3 percentage points from US GDP growth over the next year or so.

Falling oil prices hurt US economy. Here's why

Oil prices jumped by more than 5 per cent on Monday after the <a href="http://www.wionews.com/world/trump-and-china-called-a-truce-in-the-trade-war-now-what-181070">United States and China</a> agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to cut supply.

US&nbsp;light crude oil rose $2.92 a barrel to a high of $53.85, up 5.7 per cent, before easing to around $53.00 by 0930 GMT. Brent crude rose 5.3 per cent or $3.14 to a high of $62.60 and was last trading around $61.60.

"From Argentina to Alberta, the oil market news is about supply curtailments," said Norbert Rücker, head of commodity research at Swiss bank Julius Baer. "A brightening market mood will likely extend today's price rally in the very near term."

<a href="http://www.wionews.com/world/us-china-agree-to-trade-war-ceasefire-more-talks-180930">China and the United States</a> agreed during a weekend meeting in Argentina of the Group of 20 leading economies not to impose additional trade tariffs for at least 90 days while they hold talks to resolve existing disputes.

The trade war between the world's two biggest economies has weighed heavily on global trade, sparking concerns of an economic slowdown.

Crude oil has not been included in the list of products facing import tariffs, but traders said the positive sentiment of the truce was also driving crude markets.

Oil also received support from an announcement by the Canadian province of Alberta that it would force producers to cut output by 8.7 per cent, or 325,000 barrels per day (bpd), to deal with a pipeline bottleneck that has led to crude building up in storage.

The Organization of the Petroleum Exporting Countries meets on Dec. 6 to decide output policy. The group, along with non-OPEC member Russia, is expected to announce cuts aimed at reining in a production surplus that has pulled down crude prices by around a third since October.

"Markets are expecting to see a substantial production cut after Russian President Vladimir Putin said his country's cooperation on oil supplies with Saudi Arabia would continue," said Hussein Sayed, chief market strategist at brokerage FXTM.

Within OPEC, Qatar said on Monday it would leave the producer club in January.

Qatar's oil production is only around 600,000 bpd, but it is the world's biggest exporter of liquefied natural gas (LNG).

The Gulf state has also been at loggerheads with its much bigger neighbour Saudi Arabia, the de facto OPEC leader.

Outside OPEC, Russian oil output stood at 11.37 million bpd in November, down from a post-Soviet record of 11.41 million bpd it reached in October, Energy Ministry data showed on Sunday.

Meanwhile, oil producers in the United States continue to churn out record amounts of oil, with crude output at an unprecedented level of more than 11.5 million bpd.

With drilling activity still high, most analysts expect US&nbsp;oil production to rise further in 2019.

Oil prices jumped by more than 5 per cent on Monday after the United States and China agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to cut supply.

Oil prices jumped by more than 5 per cent on Monday after the United States and China agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to cut supply. US light crude oil rose $2.92 a barrel to a high of $53.85, up 5.7 per cent, before easing to around $53.00 by 0930 GMT. Brent crude rose 5.3 per cent or $3.14 to a high of $62.60 and was last trading around $61.60. "From Argentina to Alberta, the oil market news is about supply curtailments," said Norbert Rücker, head of commodity research at Swiss bank Julius Baer. "A brightening market mood will likely extend today's price rally in the very near term." China and the United States agreed during a weekend meeting in Argentina of the Group of 20 leading economies not to impose additional trade tariffs for at least 90 days while they hold talks to resolve existing disputes. The trade war between the world's two biggest economies has weighed heavily on global trade, sparking concerns of an economic slowdown. Crude oil has not been included in the list of products facing import tariffs, but traders said the positive sentiment of the truce was also driving crude markets. Oil also received support from an announcement by the Canadian province of Alberta that it would force producers to cut output by 8.7 per cent, or 325,000 barrels per day (bpd), to deal with a pipeline bottleneck that has led to crude building up in storage. The Organization of the Petroleum Exporting Countries meets on Dec. 6 to decide output policy. The group, along with non-OPEC member Russia, is expected to announce cuts aimed at reining in a production surplus that has pulled down crude prices by around a third since October. "Markets are expecting to see a substantial production cut after Russian President Vladimir Putin said his country's cooperation on oil supplies with Saudi Arabia would continue," said Hussein Sayed, chief market strategist at brokerage FXTM. Within OPEC, Qatar said on Monday it would leave the producer club in January. Qatar's oil production is only around 600,000 bpd, but it is the world's biggest exporter of liquefied natural gas (LNG). The Gulf state has also been at loggerheads with its much bigger neighbour Saudi Arabia, the de facto OPEC leader. Outside OPEC, Russian oil output stood at 11.37 million bpd in November, down from a post-Soviet record of 11.41 million bpd it reached in October, Energy Ministry data showed on Sunday. Meanwhile, oil producers in the United States continue to churn out record amounts of oil, with crude output at an unprecedented level of more than 11.5 million bpd. With drilling activity still high, most analysts expect US oil production to rise further in 2019.

Ahead of OPEC meeting, oil prices jump 5%

Oil prices retreated on Friday amid a global glut, racking up a 20 per cent drop for November, while world equity markets were mixed ahead of weekend talks between US&nbsp;President Donald Trump and Chinese leader Xi Jinping.

US shares, however, turned positive midday after a Chinese official said at the Group of 20 industrialized nations summit in Argentina that the United States and China were making progress on trade talks.

"Consensus is steadily increasing," Wang Xiaolong, director general of the Chinese Foreign Ministry's department of international economic affairs, told Reuters on the sidelines of the summit.

The S&amp;P 500 and Nasdaq posted their biggest weekly percentage gains in nearly seven years on trade hopes and after the US Federal Reserve hinted this week at a more dovish approach to interest rate hikes.&nbsp;

In Europe, Frankfurt's had its worst run since late 2008, weighed by Deutsche Bank shares falling to an all-time low as police searched the bank's headquarters for a second day in a money laundering scandal linked to the Panama Papers.

MSCI's gauge of stocks across the globe shed 0.10 per cent, while the pan-European STOXX 600 index&nbsp;lost 0.17 per cent.

On Wall Street, the Dow Jones Industrial Average rose 199.62 points, or 0.79 per cent, to 25,538.46, the S&amp;P 500 &nbsp;gained 22.4 points, or 0.82 per cent, to 2,760.16 and the Nasdaq Composite added 57.45 points, or 0.79 per cent, to 7,330.54.

November's real humdingers have been oil and shares of Apple Inc, which have plunged 21 per cent and 18 per cent, respectively, the biggest declines for both since the financial crisis a decade ago.

Swelling oil inventories depressed sentiment and oil prices, despite widespread expectations that OPEC and Russia would agree on some form of production cut next week. OPEC and its allies are meeting in Vienna next week to discuss oil output.&nbsp;

Ucrude fell 1.69 per cent to $50.58 per barrel and Brent was last at $58.68, down 1.39 per cent on the day.

Markets could have a wild December if Trump and Xi fail to de-escalate their trade rhetoric during talks at this weekend's G20 meeting in Argentina.

"The three key issues that people are really focusing on are how dovish is the Fed going to be going forward, how are trade relations with China going to play out, and what's going on in the oil markets," said Charlie Ripley, senior market strategist for Allianz Investment Management in Minneapolis.

"But as we get better news, that's helped lift the markets," Ripley added. "That's why we're seeing a week like this week."

Trump pointed to positive signs in trade talks, saying on Friday, "We're working very hard. If we could make a deal, that would be good. I think they want to. I think we'd like to."

Still, the dollar rose as investors prepared for fallout from the talks, which are expected to increase volatility across markets.

The dollar index, tracking the greenback against six major currencies, rose 0.46 per cent, with the euro&nbsp;down 0.66 per cent to $1.1316.

Oil prices retreated on Friday amid a global glut, racking up a 20 per cent drop for November, while world equity markets were mixed ahead of weekend talks between US President Donald Trump and Chinese leader Xi Jinping.

Oil prices retreated on Friday amid a global glut, racking up a 20 per cent drop for November, while world equity markets were mixed ahead of weekend talks between US President Donald Trump and Chinese leader Xi Jinping. US shares, however, turned positive midday after a Chinese official said at the Group of 20 industrialized nations summit in Argentina that the United States and China were making progress on trade talks. "Consensus is steadily increasing," Wang Xiaolong, director general of the Chinese Foreign Ministry's department of international economic affairs, told Reuters on the sidelines of the summit. The S&P 500 and Nasdaq posted their biggest weekly percentage gains in nearly seven years on trade hopes and after the US Federal Reserve hinted this week at a more dovish approach to interest rate hikes. In Europe, Frankfurt's had its worst run since late 2008, weighed by Deutsche Bank shares falling to an all-time low as police searched the bank's headquarters for a second day in a money laundering scandal linked to the Panama Papers. MSCI's gauge of stocks across the globe shed 0.10 per cent, while the pan-European STOXX 600 index lost 0.17 per cent. On Wall Street, the Dow Jones Industrial Average rose 199.62 points, or 0.79 per cent, to 25,538.46, the S&P 500 gained 22.4 points, or 0.82 per cent, to 2,760.16 and the Nasdaq Composite added 57.45 points, or 0.79 per cent, to 7,330.54. November's real humdingers have been oil and shares of Apple Inc, which have plunged 21 per cent and 18 per cent, respectively, the biggest declines for both since the financial crisis a decade ago. Swelling oil inventories depressed sentiment and oil prices, despite widespread expectations that OPEC and Russia would agree on some form of production cut next week. OPEC and its allies are meeting in Vienna next week to discuss oil output. Ucrude fell 1.69 per cent to $50.58 per barrel and Brent was last at $58.68, down 1.39 per cent on the day. Markets could have a wild December if Trump and Xi fail to de-escalate their trade rhetoric during talks at this weekend's G20 meeting in Argentina. "The three key issues that people are really focusing on are how dovish is the Fed going to be going forward, how are trade relations with China going to play out, and what's going on in the oil markets," said Charlie Ripley, senior market strategist for Allianz Investment Management in Minneapolis. "But as we get better news, that's helped lift the markets," Ripley added. "That's why we're seeing a week like this week." Trump pointed to positive signs in trade talks, saying on Friday, "We're working very hard. If we could make a deal, that would be good. I think they want to. I think we'd like to." Still, the dollar rose as investors prepared for fallout from the talks, which are expected to increase volatility across markets. The dollar index, tracking the greenback against six major currencies, rose 0.46 per cent, with the euro down 0.66 per cent to $1.1316.

Global markets: Oil tumbles on supply glut; Wall Street up on G20 comments

Oil prices edged lower on Friday due to concerns of oversupply and a strong dollar but losses were limited by expectations that the Organization of the Petroleum Exporting Countries (OPEC) and Russia would agree on some form of production cut next week.

The two benchmarks, North Sea Brent&nbsp;and US&nbsp;crude, still have had their weakest month in more than 10 years in November, losing more than 20 per cent as global supply has outstripped demand.

Front-month Brent futures fell 80 cents, or 1.3 per cent, to settle at $58.71 a barrel, ahead of expiry. The more active February Brent crude futures&nbsp;lost 45 cents to settle at $59.46 a barrel. US crude CLc1&nbsp;dropped 52 cents, or 1 per cent, to $50.93 a barrel.

Oil prices also came under pressure as the dollar rose against a basket of currencies as investors hoped that the United States and China would come to an agreement over trade talks.

A stronger dollar makes greenback-denominated oil more expensive for holders of other currencies.

Prices pared losses from session lows after Bloomberg reported OPEC's advisory committee suggested decreasing production by 1.3 million barrels per day from last month's levels, traders said.

"Oil prices bounced back late in the day on Friday on reports that the OPEC committee had suggested a 1.3 million barrel per day cut from the October level," said Fawad Razaqzada, market analyst at futures brokerage Forex.com.

"The pressure has certainly been building as prices continued to fall amid ongoing concerns over excessive supply and lower demand growth ... If no action is taken, oil prices could certainly drop further, while a production cut should lead to a sizeable rebound for these severely oversold levels."

Before the OPEC meeting in Vienna, the world's top three producers - the United States, Russia and Saudi Arabia - will be part of a meeting this weekend of the Group of 20 industrialized nations in Buenos Aires, Argentina.

Russia's energy minister Alexander Novak will meet his Saudi counterpart at the G20 summit in Argentina and discuss an oil output reduction in 2019, RIA news agency cited Novak as saying.

He was also reported to have said that Russia's 2019 oil output is expected at the same level as this year but could be adjusted, depending on a deal between OPEC and non-OPEC members.

Surging oil production in the United States, Russia and by members of the Middle East-dominated OPEC has helped fill global inventories and create a glut in some markets.

US crude oil production rose about 129,000 barrels per day (bpd) in September to a fresh record of about 11.5 million bpd, the Energy Information Administration said in a monthly report.

A slowdown in oil demand growth is compounding the emerging oversupply.

"At the heart of the malaise are concerns that OPEC&nbsp;will not do enough to address the current oversupply," said Stephen Brennock, an analyst at London brokerage PVM Oil.

The weakness in sentiment is visible in the Brent forward price curve, which now has prices for future delivery above those for immediate dispatch, a structure known as "contango", which can make it attractive to put oil into storage.

Brent crude speculators cut their net long positions to the lowest level since 2015 in the week through Tuesday. Brent net longs fell 14,057 contracts to 168,512 according to data from the Intercontinental Exchange (ICE).

A monthly Reuters survey indicates that output in November from the 12 OPEC members with supply reduction targets under a previous production agreement fell 110,000 bpd from October, while total OPEC output decreased by 160,000 bpd.

A CME group indicator suggested that expectations of a production cut were weakening. The tool, known as OpecWatch, uses West Texas Intermediate crude oil options markets to calculate the probabilities of certain outcomes of OPEC meetings. The market sentiment has shifted from a 70 per cent expectation of a small production cut earlier this week to about a 56 per cent chance on Friday, CME Group said.

Oil inventories are rising fast in the United States, where crude stocks&nbsp;have risen for 10 straight weeks to 450.5 million barrels, the most in a year, as production remains at an all-time high of 11.7 million bpd, according to the Energy Information Administration (EIA).

US energy firms this week added oil rigs for a third week in four and increased the rig count for the fifth month in a row, General Electric Co's GE.N&nbsp;Baker Hughes energy services firm said in its closely followed report.&nbsp;

Oil prices edged lower on Friday due to concerns of oversupply and a strong dollar but losses were limited by expectations that the Organization of the Petroleum Exporting Countries (OPEC) and Russia would agree on some form of production cut next week.

Oil prices edged lower on Friday due to concerns of oversupply and a strong dollar but losses were limited by expectations that the Organization of the Petroleum Exporting Countries (OPEC) and Russia would agree on some form of production cut next week. The two benchmarks, North Sea Brent and US crude, still have had their weakest month in more than 10 years in November, losing more than 20 per cent as global supply has outstripped demand. Front-month Brent futures fell 80 cents, or 1.3 per cent, to settle at $58.71 a barrel, ahead of expiry. The more active February Brent crude futures lost 45 cents to settle at $59.46 a barrel. US crude CLc1 dropped 52 cents, or 1 per cent, to $50.93 a barrel. Oil prices also came under pressure as the dollar rose against a basket of currencies as investors hoped that the United States and China would come to an agreement over trade talks. A stronger dollar makes greenback-denominated oil more expensive for holders of other currencies. Prices pared losses from session lows after Bloomberg reported OPEC's advisory committee suggested decreasing production by 1.3 million barrels per day from last month's levels, traders said. "Oil prices bounced back late in the day on Friday on reports that the OPEC committee had suggested a 1.3 million barrel per day cut from the October level," said Fawad Razaqzada, market analyst at futures brokerage Forex.com. "The pressure has certainly been building as prices continued to fall amid ongoing concerns over excessive supply and lower demand growth ... If no action is taken, oil prices could certainly drop further, while a production cut should lead to a sizeable rebound for these severely oversold levels." Before the OPEC meeting in Vienna, the world's top three producers - the United States, Russia and Saudi Arabia - will be part of a meeting this weekend of the Group of 20 industrialized nations in Buenos Aires, Argentina. Russia's energy minister Alexander Novak will meet his Saudi counterpart at the G20 summit in Argentina and discuss an oil output reduction in 2019, RIA news agency cited Novak as saying. He was also reported to have said that Russia's 2019 oil output is expected at the same level as this year but could be adjusted, depending on a deal between OPEC and non-OPEC members. Surging oil production in the United States, Russia and by members of the Middle East-dominated OPEC has helped fill global inventories and create a glut in some markets. US crude oil production rose about 129,000 barrels per day (bpd) in September to a fresh record of about 11.5 million bpd, the Energy Information Administration said in a monthly report. A slowdown in oil demand growth is compounding the emerging oversupply. "At the heart of the malaise are concerns that OPEC will not do enough to address the current oversupply," said Stephen Brennock, an analyst at London brokerage PVM Oil. The weakness in sentiment is visible in the Brent forward price curve, which now has prices for future delivery above those for immediate dispatch, a structure known as "contango", which can make it attractive to put oil into storage. Brent crude speculators cut their net long positions to the lowest level since 2015 in the week through Tuesday. Brent net longs fell 14,057 contracts to 168,512 according to data from the Intercontinental Exchange (ICE). A monthly Reuters survey indicates that output in November from the 12 OPEC members with supply reduction targets under a previous production agreement fell 110,000 bpd from October, while total OPEC output decreased by 160,000 bpd. A CME group indicator suggested that expectations of a production cut were weakening. The tool, known as OpecWatch, uses West Texas Intermediate crude oil options markets to calculate the probabilities of certain outcomes of OPEC meetings. The market sentiment has shifted from a 70 per cent expectation of a small production cut earlier this week to about a 56 per cent chance on Friday, CME Group said. Oil inventories are rising fast in the United States, where crude stocks have risen for 10 straight weeks to 450.5 million barrels, the most in a year, as production remains at an all-time high of 11.7 million bpd, according to the Energy Information Administration (EIA). US energy firms this week added oil rigs for a third week in four and increased the rig count for the fifth month in a row, General Electric Co's GE.N Baker Hughes energy services firm said in its closely followed report.

Oil drops; losses limited by hopes of OPEC, Russia output cut

&nbsp;Oil prices steadied on Friday as expectations that OPEC and Russia would agree some form of production cut next week balanced pressure from swelling inventories.

Both international oil benchmarks, North Sea Brent and US&nbsp;light crude, have had their weakest month for more than 10 years in November, losing 28 per cent and 30 per cent respectively as global supply has outstripped demand.

Brent was up 25 cents at $59.76 a barrel by 0910 GMT. US&nbsp;crude was unchanged at $51.45. Both contracts are up about 1 per cent this week, the first weekly gains in almost two months.

Surging oil production in the United States, Russia and by members of the Middle East-dominated Organization of the Petroleum Exporting Countries has helped fill global inventories and create a glut in some markets.

A slowdown in oil demand growth is compounding the emerging oversupply.

"Near-term oversupply has gutted Brent prices," said Jason Gammel, an analyst at US&nbsp;investment bank Jefferies, adding that there was "an increasing urgency to move crude into storage".

This move is visible in the Brent forward price curve, which now has prices for future delivery above those for immediate dispatch, a structure known as "contango", which can make it attractive to put oil into storage for later sale.

To rein in the glut, OPEC and its main partner Russia are discussing supply cuts and are due to meet in Vienna on Dec. 6 and 7 to agree production strategy.

"The next OPEC meeting is going to prove a pivotal moment for the direction of oil prices in 2019," BNP Paribas strategist Harry Tchilinguirian told Reuters Global Oil Forum.

"A decision will have to be made against a background of strong US&nbsp;shale oil supply growth, and for now, weaker expectations on global oil demand growth."

Before the OPEC meeting, the world`s top three producers - the United States, Russia and Saudi Arabia - will be part of a meeting this weekend of the Group of 20 industrialised nations in Buenos Aires, Argentina.

Oil inventories are rising fast in the United States, where commercial crude stocks rose by 3.6 million barrels in the week to November&nbsp;23 to 450.49 million barrels, according to the Energy Information Administration (EIA).&nbsp;US&nbsp;crude production is at a record high of 11.7 million barrels per day (bpd).

Crude reserves increased 6.4 billion barrels, or 19.5 per cent, to 39.2 billion barrels at year-end 2017, marginally higher than the previous record of 39 billion barrels set in 1970, the EIA said. 
&nbsp;

Oil prices steadied on Friday as expectations that OPEC and Russia would agree some form of production cut next week balanced pressure from swelling inventories.

Oil prices steadied on Friday as expectations that OPEC and Russia would agree some form of production cut next week balanced pressure from swelling inventories. Both international oil benchmarks, North Sea Brent and US light crude, have had their weakest month for more than 10 years in November, losing 28 per cent and 30 per cent respectively as global supply has outstripped demand. Brent was up 25 cents at $59.76 a barrel by 0910 GMT. US crude was unchanged at $51.45. Both contracts are up about 1 per cent this week, the first weekly gains in almost two months. Surging oil production in the United States, Russia and by members of the Middle East-dominated Organization of the Petroleum Exporting Countries has helped fill global inventories and create a glut in some markets. A slowdown in oil demand growth is compounding the emerging oversupply. "Near-term oversupply has gutted Brent prices," said Jason Gammel, an analyst at US investment bank Jefferies, adding that there was "an increasing urgency to move crude into storage". This move is visible in the Brent forward price curve, which now has prices for future delivery above those for immediate dispatch, a structure known as "contango", which can make it attractive to put oil into storage for later sale. To rein in the glut, OPEC and its main partner Russia are discussing supply cuts and are due to meet in Vienna on Dec. 6 and 7 to agree production strategy. "The next OPEC meeting is going to prove a pivotal moment for the direction of oil prices in 2019," BNP Paribas strategist Harry Tchilinguirian told Reuters Global Oil Forum. "A decision will have to be made against a background of strong US shale oil supply growth, and for now, weaker expectations on global oil demand growth." Before the OPEC meeting, the world`s top three producers - the United States, Russia and Saudi Arabia - will be part of a meeting this weekend of the Group of 20 industrialised nations in Buenos Aires, Argentina. Oil inventories are rising fast in the United States, where commercial crude stocks rose by 3.6 million barrels in the week to November 23 to 450.49 million barrels, according to the Energy Information Administration (EIA). US crude production is at a record high of 11.7 million barrels per day (bpd). Crude reserves increased 6.4 billion barrels, or 19.5 per cent, to 39.2 billion barrels at year-end 2017, marginally higher than the previous record of 39 billion barrels set in 1970, the EIA said.

Oil steady as expected OPEC cuts balance high inventory

Oil rose further above $60 a barrel on Wednesday, supported by expectations that OPEC and its partners will next week decide to curb supply and helped by a drop in North Sea output.

The Organization of the Petroleum Exporting Countries plus Russia and other allies meet on December 6-7. Producers are discussing a supply curb of 1 to 1.4 million barrels per day and possibly more, OPEC delegates have told Reuters.

Brent crude, the global benchmark, was up 53 cents at $60.74 a barrel at 0919 GMT and traded as high as $61.27.

US crude added 41 cents to $51.97.

"OPEC needs to cut if it wants the market to be a little less over-supplied in the first half of 2019," said Olivier Jakob, analyst at Petromatrix, although he added the rally was limited. "We are not making significant moves."

Despite Wednesday's rise, Brent has slumped 30 per cent from a four-year high above $86 a barrel in early October, pressured by concerns that supply will exceed demand in 2019 as economic growth slows.

The slump since October is so far on a par with the 2008 price crash and steeper than that of 2014-2015 - both of which prompted OPEC to agree output curbs to support the market.

The OPEC meeting in Vienna will follow a gathering by the Group of 20 (G20) nations in Argentina this weekend, at which oil policy is expected to be discussed, potentially laying the groundwork for an OPEC deal.

The market also gained support from a supply outage in the North Sea, home to the crude underpinning the Brent contract.

The Buzzard oilfield, the UK's largest, has closed temporarily after the discovery of pipe corrosion. As a result, trade sources said three December cargoes of Forties crude had been cancelled.

"Few would bet against further disruptions," said Stephen Brennock of oil broker PVM, referring to the impact of the outage on cargo loadings.

A weekly report showing a rise in US crude stockpiles, the 10th consecutive week of gains, limited the rally.

The American Petroleum Institute, an industry group, said on Tuesday US crude stocks rose by 3.5 million barrels, more than analysts had forecast. The government's official supply report is due later on Wednesday at 1530 GMT.

Oil rose further above $60 a barrel on Wednesday, supported by expectations that OPEC and its partners will next week decide to curb supply and helped by a drop in North Sea output.

Oil rose further above $60 a barrel on Wednesday, supported by expectations that OPEC and its partners will next week decide to curb supply and helped by a drop in North Sea output. The Organization of the Petroleum Exporting Countries plus Russia and other allies meet on December 6-7. Producers are discussing a supply curb of 1 to 1.4 million barrels per day and possibly more, OPEC delegates have told Reuters. Brent crude, the global benchmark, was up 53 cents at $60.74 a barrel at 0919 GMT and traded as high as $61.27. US crude added 41 cents to $51.97. "OPEC needs to cut if it wants the market to be a little less over-supplied in the first half of 2019," said Olivier Jakob, analyst at Petromatrix, although he added the rally was limited. "We are not making significant moves." Despite Wednesday's rise, Brent has slumped 30 per cent from a four-year high above $86 a barrel in early October, pressured by concerns that supply will exceed demand in 2019 as economic growth slows. The slump since October is so far on a par with the 2008 price crash and steeper than that of 2014-2015 - both of which prompted OPEC to agree output curbs to support the market. The OPEC meeting in Vienna will follow a gathering by the Group of 20 (G20) nations in Argentina this weekend, at which oil policy is expected to be discussed, potentially laying the groundwork for an OPEC deal. The market also gained support from a supply outage in the North Sea, home to the crude underpinning the Brent contract. The Buzzard oilfield, the UK's largest, has closed temporarily after the discovery of pipe corrosion. As a result, trade sources said three December cargoes of Forties crude had been cancelled. "Few would bet against further disruptions," said Stephen Brennock of oil broker PVM, referring to the impact of the outage on cargo loadings. A weekly report showing a rise in US crude stockpiles, the 10th consecutive week of gains, limited the rally. The American Petroleum Institute, an industry group, said on Tuesday US crude stocks rose by 3.5 million barrels, more than analysts had forecast. The government's official supply report is due later on Wednesday at 1530 GMT.

Oil rises further above $60 as OPEC, North Sea outage support

Oil prices on Monday clawed back some losses from a nearly 8-per cent plunge the previous session, but Brent failed to hold above $60 per barrel amid generally weak financial markets.

Front-month Brent crude oil futures had risen by 96 cents, or 1.6 per cent, to $59.76 per barrel by 0745 GMT.

US West Texas Intermediate (WTI) crude futures were up 62 cents, or 1.2 per cent, at $51.04 per barrel.

The gains partly made up for Friday's selloff, which traders have already dubbed 'Black Friday'.

Reacting to Friday's falls in Brent and WTI, China's Shanghai crude futures on Monday fell by 5 per cent, hitting their daily downside-limit.

Judging by exchange data, traders are preparing for more price falls.

Managed short positions in front-month WTI crude futures, which would profit from further price declines, have surged from record lows in July to the highest number of short positions since October 2017.

What's more, the number of puts - which give a trader the option though not obligation to sell a financial instrument at a certain price - in February Brent crude oil futures at $55 and $50 per barrel has surged to record levels since October.

The downward pressure comes from surging supply and a slowdown in demand growth which is expected to result in an oil supply overhang by next year.

"2019 will be a choppy year for the oil market as questions surrounding the prospect of a slowing global economy and a supply surplus are expected to increase," analysts at Fitch Solutions said on Monday.

Fitch said that even an expected supply cut led by the Organization of the Petroleum Exporting Countries (OPEC) following an official meeting on December 6 "may not be enough to counteract the bearish forces".

WIDER DOWNTURN

Oil markets are also being affected by a downturn in wider financial markets.

"2018 clearly marked the end of the 10-year Asia credit bull market due to tightening financial conditions in Asia (especially China), and we expect this to remain the case in 2019," Morgan Stanley said in a note released on Sunday.

"We don't think that we are at the bottom of the cycle yet," the US bank said.

Oil markets have also been weighed down by a strong US-dollar, which has surged against most other currencies this year, thanks to rising interest rates that have pulled investor money out of other currencies and also assets like oil, which are seen as more risky than the greenback.

"Anything denominated against the USD is under pressure right now, said McKenna.

Another risk to global trade and overall economic growth is the trade war between the world's two biggest economies, the United States and China.

"The US-China trade conflict poses a downside risk as we forecast the US to impose 25 percent tariffs on all China imports by Q1 2019," US bank JP Morgan said in a note published on Friday. 
&nbsp;

Oil prices on Monday clawed back some losses from a nearly 8-per cent plunge the previous session, but Brent failed to hold above $60 per barrel amid generally weak financial markets.

Oil prices on Monday clawed back some losses from a nearly 8-per cent plunge the previous session, but Brent failed to hold above $60 per barrel amid generally weak financial markets. Front-month Brent crude oil futures had risen by 96 cents, or 1.6 per cent, to $59.76 per barrel by 0745 GMT. US West Texas Intermediate (WTI) crude futures were up 62 cents, or 1.2 per cent, at $51.04 per barrel. The gains partly made up for Friday's selloff, which traders have already dubbed 'Black Friday'. Reacting to Friday's falls in Brent and WTI, China's Shanghai crude futures on Monday fell by 5 per cent, hitting their daily downside-limit. Judging by exchange data, traders are preparing for more price falls. Managed short positions in front-month WTI crude futures, which would profit from further price declines, have surged from record lows in July to the highest number of short positions since October 2017. What's more, the number of puts - which give a trader the option though not obligation to sell a financial instrument at a certain price - in February Brent crude oil futures at $55 and $50 per barrel has surged to record levels since October. The downward pressure comes from surging supply and a slowdown in demand growth which is expected to result in an oil supply overhang by next year. "2019 will be a choppy year for the oil market as questions surrounding the prospect of a slowing global economy and a supply surplus are expected to increase," analysts at Fitch Solutions said on Monday. Fitch said that even an expected supply cut led by the Organization of the Petroleum Exporting Countries (OPEC) following an official meeting on December 6 "may not be enough to counteract the bearish forces". WIDER DOWNTURN Oil markets are also being affected by a downturn in wider financial markets. "2018 clearly marked the end of the 10-year Asia credit bull market due to tightening financial conditions in Asia (especially China), and we expect this to remain the case in 2019," Morgan Stanley said in a note released on Sunday. "We don't think that we are at the bottom of the cycle yet," the US bank said. Oil markets have also been weighed down by a strong US-dollar, which has surged against most other currencies this year, thanks to rising interest rates that have pulled investor money out of other currencies and also assets like oil, which are seen as more risky than the greenback. "Anything denominated against the USD is under pressure right now, said McKenna. Another risk to global trade and overall economic growth is the trade war between the world's two biggest economies, the United States and China. "The US-China trade conflict poses a downside risk as we forecast the US to impose 25 percent tariffs on all China imports by Q1 2019," US bank JP Morgan said in a note published on Friday.

Oil prices claw back some losses after 'Black Friday' plunge

Oil prices slumped Friday to lows not seen since last year as concerns over high crude supplies triggered massive selling, dealers said.

The WTI futures contract, the New York commodities markets' benchmark, and its European counterpart Brent Crude both fell more than six percent on the day.

High global oil production compared to demand was the top reason for Friday's selling, while the outlook for a weakening world economy led investors to conclude that growth would not be strong enough to soak up the surplus.

"The truth of the matter remains that rising global crude supply coupled with worrying signs of slowing demand have written a recipe for disaster for the oil markets," said Lukman Otunuga, a research analyst at FXTM.

With a December OPEC meeting not expected to make a major dent in production levels, WTI now had scope to fall to $50 "in the near term", he said.

In late European trading, WTI held just over $51 and Brent around $59.

Some analysts said US President Donald Trump had much to do with falling oil prices.

Some say it's Trump

"Although most analysts claim that this has to do with supply overhang and increased production from Russia and Saudi Arabia, the bottom line is that the US President keeps pushing for lower prices," said Fiona Cincotta, senior market analyst at City Index trading group.

"While this is the case it will be difficult to see a return to oil at a higher level unless oil cartel OPEC decides on a major output cut at its next meeting on December 6."

The pound dropped versus the dollar, a day after spiking on news that Britain and the EU had struck a draft deal over ties post Brexit.

That came ahead of a weekend summit in Brussels to sign off on an overall package on the UK's exit from the European Union in March.&nbsp;

Elsewhere, the euro dropped as data monitoring company IHS Markit said business growth in the 19-nation eurozone pulled back in November to its slowest rate in nearly four years, as exports weakened.

Stocks mixed

Eurozone stock markets, meanwhile, recoverd to show mild gains by the close but London ended lower as weak energy prices weighed.

On Wall Street, the Dow index was also under pressure with shares in energy companies feeling the pain from lower oil prices and investors weighing headwinds facing the global economy.

"US stocks are lower in early action following yesterday's Thanksgiving holiday break, with the energy sector seeing some pressure as crude oil prices are continuing a tumble, while European political uncertainty remains and China/US trade worries are lingering ahead of next week's G-20 summit," analysts at Charles Schwab summed up market sentiment.

Earlier, Asian stock markets had already plunged into the red.

Chinese shares led the downward charge as Shanghai slumped by more than two percent, with the tech sector hit hard by a Wall Street Journal report that Washington is urging its allies to avoid using equipment from Chinese telecoms giant Huawei.&nbsp;

Worsening trade tensions between the United States and China have shattered confidence on global trading floors.

"China wants to make a deal. If we can make a deal, we will," Trump said, ahead of crunch talks with his Chinese counterpart Xi Jinping at the G20 in Argentina next week.

The world's top two economies have been locked in a trade war since the summer, with the US imposing punitive tariffs on Chinese goods worth $250 billion per year. In retaliation, China imposed tariffs on $110 billion of US goods.

Washington has threatened to toughen measures even further if the issue is not resolved before January. 
&nbsp;

Oil prices slumped Friday to lows not seen since last year as concerns over high crude supplies triggered massive selling, dealers said. The WTI futures contract, the New York commodities markets' benchmark, and its European counterpart Brent Crude both fell more than six percent on the day.

Oil prices slumped Friday to lows not seen since last year as concerns over high crude supplies triggered massive selling, dealers said. The WTI futures contract, the New York commodities markets' benchmark, and its European counterpart Brent Crude both fell more than six percent on the day. High global oil production compared to demand was the top reason for Friday's selling, while the outlook for a weakening world economy led investors to conclude that growth would not be strong enough to soak up the surplus. "The truth of the matter remains that rising global crude supply coupled with worrying signs of slowing demand have written a recipe for disaster for the oil markets," said Lukman Otunuga, a research analyst at FXTM. With a December OPEC meeting not expected to make a major dent in production levels, WTI now had scope to fall to $50 "in the near term", he said. In late European trading, WTI held just over $51 and Brent around $59. Some analysts said US President Donald Trump had much to do with falling oil prices. Some say it's Trump "Although most analysts claim that this has to do with supply overhang and increased production from Russia and Saudi Arabia, the bottom line is that the US President keeps pushing for lower prices," said Fiona Cincotta, senior market analyst at City Index trading group. "While this is the case it will be difficult to see a return to oil at a higher level unless oil cartel OPEC decides on a major output cut at its next meeting on December 6." The pound dropped versus the dollar, a day after spiking on news that Britain and the EU had struck a draft deal over ties post Brexit. That came ahead of a weekend summit in Brussels to sign off on an overall package on the UK's exit from the European Union in March. Elsewhere, the euro dropped as data monitoring company IHS Markit said business growth in the 19-nation eurozone pulled back in November to its slowest rate in nearly four years, as exports weakened. Stocks mixed Eurozone stock markets, meanwhile, recoverd to show mild gains by the close but London ended lower as weak energy prices weighed. On Wall Street, the Dow index was also under pressure with shares in energy companies feeling the pain from lower oil prices and investors weighing headwinds facing the global economy. "US stocks are lower in early action following yesterday's Thanksgiving holiday break, with the energy sector seeing some pressure as crude oil prices are continuing a tumble, while European political uncertainty remains and China/US trade worries are lingering ahead of next week's G-20 summit," analysts at Charles Schwab summed up market sentiment. Earlier, Asian stock markets had already plunged into the red. Chinese shares led the downward charge as Shanghai slumped by more than two percent, with the tech sector hit hard by a Wall Street Journal report that Washington is urging its allies to avoid using equipment from Chinese telecoms giant Huawei. Worsening trade tensions between the United States and China have shattered confidence on global trading floors. "China wants to make a deal. If we can make a deal, we will," Trump said, ahead of crunch talks with his Chinese counterpart Xi Jinping at the G20 in Argentina next week. The world's top two economies have been locked in a trade war since the summer, with the US imposing punitive tariffs on Chinese goods worth $250 billion per year. In retaliation, China imposed tariffs on $110 billion of US goods. Washington has threatened to toughen measures even further if the issue is not resolved before January.

Oil prices collapse as glut fear triggers heavy selling

Oil markets remained weak on Friday, <a href="http://www.wionews.com/world/president-donald-trump-thanks-saudi-arabia-for-lower-oil-prices-178671">pressured by concerns that producers</a> are churning out more oil than the world needs amid a bleak economic outlook.

US West Texas Intermediate (WTI) crude futures CLc1, were at $54.07 per barrel at 0204 GMT, down 56 cents, or 1 per cent, below their last settlement.

Front-month Brent crude oil futures LCOc1 were at $62.64 per barrel, 4 cents above their last close amid thin trading due to a holiday in Japan.

“Oil prices fell as concerns of further oversupply drove sentiment lower,” ANZ bank said on Friday.

Brent may revisit its November 20 low of $61.71 per barrel in the near-term, Reuters technical commodity analyst Wang Tao said.

Oil supply has surged this year, with the top-three producers of the United States, Russia and Saudi Arabia pumping out more than a third of global consumption, which stands around 100 million barrels per day (bpd).

High production comes as the demand outlook weakens on the back of a global economic slowdown.

Oil prices have plunged by around 30 per cent since their last peaks in early October, as global production started to exceed consumption in the fourth quarter of this year, ending a period of undersupply that started in the first quarter of 2017, according to data in Refinitiv Eikon.

Adjusting to lower demand, top crude exporter Saudi Arabia said that it may reduce supply.

“We will not sell oil that customers don’t need,” Saudi Energy Minister Khalid al-Falih said.

Saudi Arabia is the de-facto leader of the producer cartel of the Organization of the Petroleum Exporting Countries (OPEC), which is discussing to cut oil supply by as much as 1.4 million bpd to prevent a supply glut.

Oil markets remained weak on Friday, pressured by concerns that producers are churning out more oil than the world needs amid a bleak economic outlook. US West Texas Intermediate (WTI) crude futures CLc1, were at $54.

Oil markets remained weak on Friday, pressured by concerns that producers are churning out more oil than the world needs amid a bleak economic outlook. US West Texas Intermediate (WTI) crude futures CLc1, were at $54.07 per barrel at 0204 GMT, down 56 cents, or 1 per cent, below their last settlement. Front-month Brent crude oil futures LCOc1 were at $62.64 per barrel, 4 cents above their last close amid thin trading due to a holiday in Japan. “Oil prices fell as concerns of further oversupply drove sentiment lower,” ANZ bank said on Friday. Brent may revisit its November 20 low of $61.71 per barrel in the near-term, Reuters technical commodity analyst Wang Tao said. Oil supply has surged this year, with the top-three producers of the United States, Russia and Saudi Arabia pumping out more than a third of global consumption, which stands around 100 million barrels per day (bpd). High production comes as the demand outlook weakens on the back of a global economic slowdown. Oil prices have plunged by around 30 per cent since their last peaks in early October, as global production started to exceed consumption in the fourth quarter of this year, ending a period of undersupply that started in the first quarter of 2017, according to data in Refinitiv Eikon. Adjusting to lower demand, top crude exporter Saudi Arabia said that it may reduce supply. “We will not sell oil that customers don’t need,” Saudi Energy Minister Khalid al-Falih said. Saudi Arabia is the de-facto leader of the producer cartel of the Organization of the Petroleum Exporting Countries (OPEC), which is discussing to cut oil supply by as much as 1.4 million bpd to prevent a supply glut.

International oil prices fall amid supply glut, bleak economic outlook

US President Donald Trump on Wednesday ignored criticism that he gave <a href="http://www.wionews.com/americas/donald-trump-stands-by-saudi-prince-despite-journalist-khashoggis-murder-178466">Saudi Arabia a free pass on the murder </a>of a dissident journalist, instead praising the Islamic kingdom for keeping oil prices low.

Trump, on holiday at his Florida Mar-a-Lago Club, doubled down on an unusually worded statement from Tuesday that he was essentially ignoring the killing of Jamal Khashoggi because of what he said were more important US strategic and commercial interests.

"Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82," he tweeted. "Thank you to Saudi Arabia, but let's go lower!"

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Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let’s go lower!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1065225779825598465?ref_src=twsrc%5Etfw">November 21, 2018</a></blockquote>
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The fulsome praise for Saudi Arabia's help in maintaining cheap oil built on comments he made Tuesday at the White House, saying that "if we broke with them, I think your oil prices would go through the roof."

"They've helped me keep them down," he said.

Guns and money

The focus on oil prices is one strand of Trump's argument against punishing the US ally for Khashoggi's death, even though the <a href="http://www.wionews.com/world/cia-has-concluded-saudi-crown-prince-ordered-journalists-killing-report-177782">CIA reportedly found strong evidence </a>that de facto Saudi leader, <a href="http://www.wionews.com/world/crown-prince-a-red-line-in-khashoggi-murder-probe-saudi-foreign-minister-178668">Crown Prince Mohammed bin Salman</a>, was involved.

Khashoggi, a US resident who wrote for The Washington Post and had been critical of Prince Mohammed, was lured to the Saudi consulate in Istanbul on October 2, killed and reportedly dismembered.

After lengthy denials, Saudi authorities admitted responsibility and said 21 people had been taken into custody. However, a CIA analysis leaked to the US media went further, reportedly pointing the finger at Prince Mohammed, who has especially close contacts with the Trump White House.

In a formal statement, Tuesday -- released just after nearly the entire White House press corps had left to cover the lighthearted annual ritual of the president sparing a turkey from the Thanksgiving table -- Trump said the prince "could very well be" in on the crime.

But he then went on to flatly reject any suggestion of punishing the Saudi leader, saying Washington "intends to remain a steadfast partner."

Trump's reasoning was that Saudi Arabia and the United States are partners in opposing Iran and the Saudis have committed to $450 billion in weapons contracts and other investments, as well as being a major oil producer.

"Very simply it is called America first!" Trump concluded.

This was in contrast to previously stated positions where Trump promised a tough response, warning in an October interview with The Wall Street Journal, for example, that the US-Saudi relationship "would take a while to rebuild."

'Crazy' prince&nbsp;

Trump's posture has provoked rare dissension among the ranks of senior Republicans.

Senator Lindsey Graham said on Fox News that Prince Mohammed is "crazy."

"It's not too much to ask an ally not to butcher a guy in a consulate," he said.&nbsp;

And Senator Bob Corker, the Republican leader of the foreign relations committee, tweeted scathingly: "I never thought I'd see the day a White House would moonlight as a public relations firm for the Crown Prince of Saudi Arabia."

Corker and the senior Democrat on the committee, Bob Menendez, demanded that the Trump administration issue a clear statement on whether Prince Mohammed was involved.

Another prominent Republican, Senator Rand Paul, added "Let's put America first, not Saudi Arabia," while Khashoggi's old employer the Post said in an editorial that Trump's position meant "a world where dictators know they can murder their critics and suffer no consequences."

Secretary of State Mike Pompeo pushed back in a radio interview Wednesday, saying: "We are going to make sure that America always stands for human rights. We've watched the Saudis actually move in that direction during our time in office as well.

"It's not an unblemished record, but there certainly have been steps forward."

US President Donald Trump on Wednesday ignored criticism that he gave Saudi Arabia a free pass on the murder of a dissident journalist, instead praising the Islamic kingdom for keeping oil prices low.

US President Donald Trump on Wednesday ignored criticism that he gave Saudi Arabia a free pass on the murder of a dissident journalist, instead praising the Islamic kingdom for keeping oil prices low. Trump, on holiday at his Florida Mar-a-Lago Club, doubled down on an unusually worded statement from Tuesday that he was essentially ignoring the killing of Jamal Khashoggi because of what he said were more important US strategic and commercial interests. "Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82," he tweeted. "Thank you to Saudi Arabia, but let's go lower!" Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let’s go lower! — Donald J. Trump (@realDonaldTrump) November 21, 2018 × The fulsome praise for Saudi Arabia's help in maintaining cheap oil built on comments he made Tuesday at the White House, saying that "if we broke with them, I think your oil prices would go through the roof." "They've helped me keep them down," he said. Guns and money The focus on oil prices is one strand of Trump's argument against punishing the US ally for Khashoggi's death, even though the CIA reportedly found strong evidence that de facto Saudi leader, Crown Prince Mohammed bin Salman, was involved. Khashoggi, a US resident who wrote for The Washington Post and had been critical of Prince Mohammed, was lured to the Saudi consulate in Istanbul on October 2, killed and reportedly dismembered. After lengthy denials, Saudi authorities admitted responsibility and said 21 people had been taken into custody. However, a CIA analysis leaked to the US media went further, reportedly pointing the finger at Prince Mohammed, who has especially close contacts with the Trump White House. In a formal statement, Tuesday -- released just after nearly the entire White House press corps had left to cover the lighthearted annual ritual of the president sparing a turkey from the Thanksgiving table -- Trump said the prince "could very well be" in on the crime. But he then went on to flatly reject any suggestion of punishing the Saudi leader, saying Washington "intends to remain a steadfast partner." Trump's reasoning was that Saudi Arabia and the United States are partners in opposing Iran and the Saudis have committed to $450 billion in weapons contracts and other investments, as well as being a major oil producer. "Very simply it is called America first!" Trump concluded. This was in contrast to previously stated positions where Trump promised a tough response, warning in an October interview with The Wall Street Journal, for example, that the US-Saudi relationship "would take a while to rebuild." 'Crazy' prince Trump's posture has provoked rare dissension among the ranks of senior Republicans. Senator Lindsey Graham said on Fox News that Prince Mohammed is "crazy." "It's not too much to ask an ally not to butcher a guy in a consulate," he said. And Senator Bob Corker, the Republican leader of the foreign relations committee, tweeted scathingly: "I never thought I'd see the day a White House would moonlight as a public relations firm for the Crown Prince of Saudi Arabia." Corker and the senior Democrat on the committee, Bob Menendez, demanded that the Trump administration issue a clear statement on whether Prince Mohammed was involved. Another prominent Republican, Senator Rand Paul, added "Let's put America first, not Saudi Arabia," while Khashoggi's old employer the Post said in an editorial that Trump's position meant "a world where dictators know they can murder their critics and suffer no consequences." Secretary of State Mike Pompeo pushed back in a radio interview Wednesday, saying: "We are going to make sure that America always stands for human rights. We've watched the Saudis actually move in that direction during our time in office as well. "It's not an unblemished record, but there certainly have been steps forward."

President Donald Trump thanks Saudi Arabia for lower oil prices 

Oil prices edged up on Tuesday as markets expected producer club OPEC to agree to supply cuts at their next meeting on December 6, aimed at preventing oversupply amid slowing demand growth and a surge in output from the United States.

US&nbsp;West Texas Intermediate (WTI) crude futures, were at $57.32 per barrel at 0048 GMT, up 12 cents, or 0.2 per cent from their last settlement.

Front-month Brent crude oil futures&nbsp;had yet to trade.

Reuters' technical commodity analyst Wang Tao said on Tuesday Brent may rise into a range of $67.60 to $69.04 per barrel and WTI to $58.29 a barrel in the short-term.

The Organisation of the Petroleum Exporting Countries (OPEC), de facto led by Saudi Arabia, is pushing for the producer cartel and its allies to cut 1 million to 1.4 million barrels per day (bpd) of supply to adjust for a slowdown in demand growth and prevent oversupply.

"Fundamentals over the next six months point to a recovery in oil prices following their sharp decline in October and early November," BNP Paribas said.

The French bank said this was due to "sizeable" losses in Iranian exports expected because of US sanctions against Tehran and because of risks of disruptions in Venezuela and also Libya and Nigeria.

"Meanwhile, producers are considering supply reductions in response and we expect OPEC to agree to a supply cut at its next official meeting on 6 December," BNP said.

The bank, therefore, said it expected Brent to recover to $80 per barrel before the year-end.

"In 2019, we expect WTI to average $69 per barrel and Brent $76 per barrel," BNP said.

Despite the gains, crude prices remain almost a quarter below their recent peaks in early October, weighed down by surging supply and a slowdown in demand growth.

This comes as supply in the United States is surging, with crude oil production&nbsp;up by almost a quarter this year, to a record 11.7 million bpd.

Oil prices edged up on Tuesday as markets expected producer club OPEC to agree to supply cuts at their next meeting on December 6, aimed at preventing oversupply amid slowing demand growth and a surge in output from the United States.

Oil prices edged up on Tuesday as markets expected producer club OPEC to agree to supply cuts at their next meeting on December 6, aimed at preventing oversupply amid slowing demand growth and a surge in output from the United States. US West Texas Intermediate (WTI) crude futures, were at $57.32 per barrel at 0048 GMT, up 12 cents, or 0.2 per cent from their last settlement. Front-month Brent crude oil futures had yet to trade. Reuters' technical commodity analyst Wang Tao said on Tuesday Brent may rise into a range of $67.60 to $69.04 per barrel and WTI to $58.29 a barrel in the short-term. The Organisation of the Petroleum Exporting Countries (OPEC), de facto led by Saudi Arabia, is pushing for the producer cartel and its allies to cut 1 million to 1.4 million barrels per day (bpd) of supply to adjust for a slowdown in demand growth and prevent oversupply. "Fundamentals over the next six months point to a recovery in oil prices following their sharp decline in October and early November," BNP Paribas said. The French bank said this was due to "sizeable" losses in Iranian exports expected because of US sanctions against Tehran and because of risks of disruptions in Venezuela and also Libya and Nigeria. "Meanwhile, producers are considering supply reductions in response and we expect OPEC to agree to a supply cut at its next official meeting on 6 December," BNP said. The bank, therefore, said it expected Brent to recover to $80 per barrel before the year-end. "In 2019, we expect WTI to average $69 per barrel and Brent $76 per barrel," BNP said. Despite the gains, crude prices remain almost a quarter below their recent peaks in early October, weighed down by surging supply and a slowdown in demand growth. This comes as supply in the United States is surging, with crude oil production up by almost a quarter this year, to a record 11.7 million bpd.

Oil prices edge up on expected OPEC supply cuts

Oil prices rose on Friday amid expectations of supply cuts from OPEC, although record US production dragged.

US West Texas Intermediate (WTI) crude oil futures were at $56.84 per barrel at 0353 GMT, up 38 cents, or 0.7 per cent, from their last settlement.

Brent crude oil futures were up 48 cents, or 0.7 per cent, at $67.10 per barrel.

Prices were mainly supported by expectations the Organization of the Petroleum Exporting Countries (OPEC) would start withholding supply soon, fearing a renewed rout such as in 2014 when prices crashed under the weight of oversupply.

OPEC's de-facto leader Saudi Arabia wants the cartel and its allies to cut output by about 1.4 million barrels per day (bpd), around 1.5 per cent of global supply, sources told Reuters this week.

However, Morgan Stanley warned a cut by the Middle East dominated producer cartel may not have the desired effect.

"The main oil price benchmarks - Brent and WTI - are both light-sweet crudes and reflect this glut," the US bank said.

"OPEC production cuts are usually implemented by removing medium and heavier barrels from the market but that does not address the oversupply of light-sweet."

Due to the structural oversupply that has emerged in the market from record production by many countries, Morgan Stanley said that "OPEC cuts are inherently temporary (because) all they can do is shift production from one period to another".

While OPEC considers withholding supply, US crude oil production reached another record last week, at 11.7 million bpd, according to US Energy Information Administration (EIA) data published on Thursday.

US output has surged by almost a quarter since the start of the year.

The record output meant US crude oil stocks posted the biggest weekly build in nearly two years.

Crude inventories soared 10.3 million barrels in the week to November 9 to 442.1 million barrels, the highest level since early December 2017.

This surge contributed to oil prices falling by around a quarter since early October, taking many by surprise.

"Oil bulls, us included, have capitulated and we no longer see oil climbing to $95 per barrel next year," Bank of America Merrill Lynch said in a note.

While sentiment has turned bearish, some analysts warn that 2019 could be tighter than expected.

"We expect 2019 oil demand to reach 101.1 million bpd," natural resources research and investment firm Goehring &amp; Rozencwajg said, up from just under 100 million bpd this year.

At the same time, the firm said production outside North America was set to disappoint.

Add OPEC's expected supply cuts, and Goehring &amp; Rozencwajg said "those investors who are able to adopt a contrarian stance ... and stomach the volatility ... are being presented with an excellent investment opportunity" to buy into oil after the recent slump.

Bank of America agreed, saying "we believe oil is oversold and will likely bounce up from the current levels, as OPEC+ dials back production in December".

Oil prices rose on Friday amid expectations of supply cuts from OPEC, although record US production dragged. US West Texas Intermediate (WTI) crude oil futures were at $56.

Oil prices rose on Friday amid expectations of supply cuts from OPEC, although record US production dragged. US West Texas Intermediate (WTI) crude oil futures were at $56.84 per barrel at 0353 GMT, up 38 cents, or 0.7 per cent, from their last settlement. Brent crude oil futures were up 48 cents, or 0.7 per cent, at $67.10 per barrel. Prices were mainly supported by expectations the Organization of the Petroleum Exporting Countries (OPEC) would start withholding supply soon, fearing a renewed rout such as in 2014 when prices crashed under the weight of oversupply. OPEC's de-facto leader Saudi Arabia wants the cartel and its allies to cut output by about 1.4 million barrels per day (bpd), around 1.5 per cent of global supply, sources told Reuters this week. However, Morgan Stanley warned a cut by the Middle East dominated producer cartel may not have the desired effect. "The main oil price benchmarks - Brent and WTI - are both light-sweet crudes and reflect this glut," the US bank said. "OPEC production cuts are usually implemented by removing medium and heavier barrels from the market but that does not address the oversupply of light-sweet." Due to the structural oversupply that has emerged in the market from record production by many countries, Morgan Stanley said that "OPEC cuts are inherently temporary (because) all they can do is shift production from one period to another". While OPEC considers withholding supply, US crude oil production reached another record last week, at 11.7 million bpd, according to US Energy Information Administration (EIA) data published on Thursday. US output has surged by almost a quarter since the start of the year. The record output meant US crude oil stocks posted the biggest weekly build in nearly two years. Crude inventories soared 10.3 million barrels in the week to November 9 to 442.1 million barrels, the highest level since early December 2017. This surge contributed to oil prices falling by around a quarter since early October, taking many by surprise. "Oil bulls, us included, have capitulated and we no longer see oil climbing to $95 per barrel next year," Bank of America Merrill Lynch said in a note. While sentiment has turned bearish, some analysts warn that 2019 could be tighter than expected. "We expect 2019 oil demand to reach 101.1 million bpd," natural resources research and investment firm Goehring & Rozencwajg said, up from just under 100 million bpd this year. At the same time, the firm said production outside North America was set to disappoint. Add OPEC's expected supply cuts, and Goehring & Rozencwajg said "those investors who are able to adopt a contrarian stance ... and stomach the volatility ... are being presented with an excellent investment opportunity" to buy into oil after the recent slump. Bank of America agreed, saying "we believe oil is oversold and will likely bounce up from the current levels, as OPEC+ dials back production in December".

Oil rises on expected OPEC cuts, but surging US supply drags

The rupee appreciated 24 paise to 72.07 against the US dollar at the interbank foreign exchange Thursday on fresh foreign fund inflows and easing crude oil prices.

Foreign institutional investors (FIIs) bought shares worth Rs 277.38 crore Wednesday, provisional data showed.

Dealers said the strength in the rupee was also supported by increased selling of dollars by exporters and the American currency's weakness against some currencies overseas.

A higher opening of the domestic equity market too influenced the rupee, they said.

The benchmark BSE Sensex was up 67.09 points, or 0.19 per cent, to quote at 35,209.08 in early trade.&nbsp;

The rupee had gained 36 paise to end at 72.31 against the US dollar Wednesday as global crude oil prices hovered near one-year lows, easing concerns over expanding current account deficit and inflation.

Brent crude, the international benchmark, fell eased by 0.47 per cent to $65.81 a barrel.

The rupee appreciated 24 paise to 72.07 against the US dollar at the interbank foreign exchange Thursday on fresh foreign fund inflows and easing crude oil prices.

The rupee appreciated 24 paise to 72.07 against the US dollar at the interbank foreign exchange Thursday on fresh foreign fund inflows and easing crude oil prices. Foreign institutional investors (FIIs) bought shares worth Rs 277.38 crore Wednesday, provisional data showed. Dealers said the strength in the rupee was also supported by increased selling of dollars by exporters and the American currency's weakness against some currencies overseas. A higher opening of the domestic equity market too influenced the rupee, they said. The benchmark BSE Sensex was up 67.09 points, or 0.19 per cent, to quote at 35,209.08 in early trade. The rupee had gained 36 paise to end at 72.31 against the US dollar Wednesday as global crude oil prices hovered near one-year lows, easing concerns over expanding current account deficit and inflation. Brent crude, the international benchmark, fell eased by 0.47 per cent to $65.81 a barrel.

Rupee rises 24 paise against US dollar on fresh fund inflow, easing crude prices

Rupee and bonds rose in early trade on Wednesday, boosted by a fall in global oil prices and on the central bank`s announcement to buy bonds via open market purchases.

The rupee opened at 72.18 to the dollar, its strongest since Sept. 21 and compared with 72.6750 on Tuesday, while the 10-year benchmark bond yield fell to as much as 7.70 per cent, its lowest since Aug. 2. The paper had ended at 7.76 per cent on Tuesday.

The Reserve Bank of India will buy 120 billion rupees ($1.65 billion) of government bonds on Thursday via open market operations.

Oil markets struggled to find their footing on Wednesday after plunging 7 per cent in the previous session, with surging supply and the spectre of faltering demand keeping investors on the edge.

Rupee and bonds rose in early trade on Wednesday, boosted by a fall in global oil prices and on the central bank`s announcement to buy bonds via open market purchases.

Rupee and bonds rose in early trade on Wednesday, boosted by a fall in global oil prices and on the central bank`s announcement to buy bonds via open market purchases. The rupee opened at 72.18 to the dollar, its strongest since Sept. 21 and compared with 72.6750 on Tuesday, while the 10-year benchmark bond yield fell to as much as 7.70 per cent, its lowest since Aug. 2. The paper had ended at 7.76 per cent on Tuesday. The Reserve Bank of India will buy 120 billion rupees ($1.65 billion) of government bonds on Thursday via open market operations. Oil markets struggled to find their footing on Wednesday after plunging 7 per cent in the previous session, with surging supply and the spectre of faltering demand keeping investors on the edge.

Rupee, bonds surge on lower oil prices, RBI bond buy announcement

Wall Street crumbled on Monday as fears for demand in the tech sector turned into a broader retreat from stocks while oil prices slid to an 11th straight day of losses despite a Saudi offer to limit output.

European equities also closed lower with Frankfurt and Paris weighed down in part by lingering concerns over Italy's high debt and Tuesday's EU-deadline for Rome to revise its 2019 budget.

Trading got off to a bad start in New York, with Apple shares declining after a key parts supplier said a client had cut orders significantly, stoking fears of waning demand for iPhones.

"The ecosystem of the supply chain around Apple is starting to feel the slide of demand," Matt Miskin of John Hancock told AFP, noting that he still expected robust holiday season performance in the tech sector.

"With a weaker global growth, tech companies are starting to get repriced lower."

But a general rout ensued for stocks. Investment bank Goldman Sachs also fell 7.5 per cent, weighing on the financial sector, while embattled engineering giant General Electric had its lowest close in nearly a decade.

The Dow and S&amp;P 500 both lost two per cent or more while the tech-heavy Nasdaq dropped 2.8 per cent. Shares in Apple closed down more than five per cent.

Treasury bond markets closed for a public holiday.

By mid-afternoon, the broad-based slide prompted President Donald Trump to point the finger, while citing no evidence, at congressional Democrats, who won control of the House of Representatives in last week's elections.

"The prospect of Presidential Harassment by the Dems is causing the Stock Market big headaches!" he wrote on Twitter. Markets had rallied the day after the vote.

Meanwhile, Bloomberg reported Monday afternoon that Trump was considering unveiling fresh auto tariffs, erasing gains by General Motors and helping push markets even lower.

Earlier in the Eurozone, the Frankfurt and Paris stock markets had dropped as well, weighed down in part by lingering concerns over Italy's high debt and Tuesday's EU deadline for Rome to revise its 2019 budget.

The dollar continued to strengthen against its major rivals, meanwhile, hitting its highest levels since the first half of 2017.

The European Union's chief Brexit negotiator warned ministers from the other 27 member states on Monday that no deal has been sealed on Britain's departure from the bloc.

Elsewhere, Saudi Arabia's energy minister called for a global output cut of a million barrels per day to re-balance the market, as Riyadh unveiled plans to trim its own production by 500,000 barrels per day from December.

Khalid al-Falih's comments follow a meeting in Abu Dhabi at the weekend, where the OPEC group and its allies had already started laying the groundwork to reduce supply in 2019.

Benchmark crude prices still finished lower in New York and London. Oil prices have shed about one-fifth of their value over the past month on oversupplies and signs of a softer-than-expected impact from US sanctions on Iranian crude exports.

Last week, higher US energy stockpiles drove WTI crude to its longest losing streak in more than 30 years, while Brent dropped below $70 a barrel for the first time since April.

Tobacco stocks also suffered following media reports that US health regulators expect to announce plans as soon as this week to seek a ban on menthol cigarettes and to limit sales of e-cigarettes.

British American Tobacco shedding 10.62 per cent to £29.96 and Imperial Tobacco losing almost 2.2 per cent on reports of a planned US ban on menthol cigarettes, which researchers have said pose a greater health risk than traditional ones.

American tobacco producers likewise headed south on the news.

Wall Street crumbled on Monday as fears for demand in the tech sector turned into a broader retreat from stocks while oil prices slid to an 11th straight day of losses despite a Saudi offer to limit output.

Wall Street crumbled on Monday as fears for demand in the tech sector turned into a broader retreat from stocks while oil prices slid to an 11th straight day of losses despite a Saudi offer to limit output. European equities also closed lower with Frankfurt and Paris weighed down in part by lingering concerns over Italy's high debt and Tuesday's EU-deadline for Rome to revise its 2019 budget. Trading got off to a bad start in New York, with Apple shares declining after a key parts supplier said a client had cut orders significantly, stoking fears of waning demand for iPhones. "The ecosystem of the supply chain around Apple is starting to feel the slide of demand," Matt Miskin of John Hancock told AFP, noting that he still expected robust holiday season performance in the tech sector. "With a weaker global growth, tech companies are starting to get repriced lower." But a general rout ensued for stocks. Investment bank Goldman Sachs also fell 7.5 per cent, weighing on the financial sector, while embattled engineering giant General Electric had its lowest close in nearly a decade. The Dow and S&P 500 both lost two per cent or more while the tech-heavy Nasdaq dropped 2.8 per cent. Shares in Apple closed down more than five per cent. Treasury bond markets closed for a public holiday. By mid-afternoon, the broad-based slide prompted President Donald Trump to point the finger, while citing no evidence, at congressional Democrats, who won control of the House of Representatives in last week's elections. "The prospect of Presidential Harassment by the Dems is causing the Stock Market big headaches!" he wrote on Twitter. Markets had rallied the day after the vote. Meanwhile, Bloomberg reported Monday afternoon that Trump was considering unveiling fresh auto tariffs, erasing gains by General Motors and helping push markets even lower. Earlier in the Eurozone, the Frankfurt and Paris stock markets had dropped as well, weighed down in part by lingering concerns over Italy's high debt and Tuesday's EU deadline for Rome to revise its 2019 budget. The dollar continued to strengthen against its major rivals, meanwhile, hitting its highest levels since the first half of 2017. The European Union's chief Brexit negotiator warned ministers from the other 27 member states on Monday that no deal has been sealed on Britain's departure from the bloc. Elsewhere, Saudi Arabia's energy minister called for a global output cut of a million barrels per day to re-balance the market, as Riyadh unveiled plans to trim its own production by 500,000 barrels per day from December. Khalid al-Falih's comments follow a meeting in Abu Dhabi at the weekend, where the OPEC group and its allies had already started laying the groundwork to reduce supply in 2019. Benchmark crude prices still finished lower in New York and London. Oil prices have shed about one-fifth of their value over the past month on oversupplies and signs of a softer-than-expected impact from US sanctions on Iranian crude exports. Last week, higher US energy stockpiles drove WTI crude to its longest losing streak in more than 30 years, while Brent dropped below $70 a barrel for the first time since April. Tobacco stocks also suffered following media reports that US health regulators expect to announce plans as soon as this week to seek a ban on menthol cigarettes and to limit sales of e-cigarettes. British American Tobacco shedding 10.62 per cent to £29.96 and Imperial Tobacco losing almost 2.2 per cent on reports of a planned US ban on menthol cigarettes, which researchers have said pose a greater health risk than traditional ones. American tobacco producers likewise headed south on the news.

Wall Street stocks: Dow & Nasdaq tumble; oil prices continue to slide

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