Take a fresh look at your lifestyle.

Texas oil rises 0.4% on OPEC supply cuts

Texas oil rises 0.4% on OPEC supply cuts


The price of Texas intermediate oil (WTI) closed on Tuesday with a rise of 0.4%, up to $ 59.22, which analysts blame on the decreed supply cuts by the Organization of Petroleum Exporting Countries (OPEC).

At the end of the operations with live voice in the New York Mercantile Exchange (Nymex), the WTI futures contracts for delivery in January totaled 22 cents compared to Monday’s session.

Oil prices rose this Tuesday after the OPEC agreement with the associated producers last week to deepen production cuts in 2020, which is making it possible to strengthen prices, according to analysts, although trade tensions between the US and China are still worrying.

Last week, the Organization of Petroleum Exporting Countries and associated producers such as Russia agreed to deepen production cuts from 1.2 million barrels per day (bpd) to 1.7 million bpd to support prices.

However, the deadline of December 15 for the next round of US tariffs on Chinese imports weighed in the markets.

US President Donald Trump does not want to implement the next round of tariffs, US Secretary of Agriculture Sonny Perdue said Monday, but he wants a “movement” from China to avoid them.

The Wall Street Journal reported that officials on both sides were laying the groundwork for a delay of a new round of tariffs.

In addition, the growth rate of China’s commodity imports has accelerated in recent months, indicating that Beijing’s stimulus efforts may be bearing fruit and that the impact of a trade war may not be as bad as It was feared.

In parallel, the Democrats of the House of the United States agreed Tuesday to support a separate trade agreement between the US, Mexico and Canada after a year of negotiations, clearing the way for ratification by Congress this year. The trade agreement must also be approved by the Canadian Parliament.

In this context, gasoline futures contracts expiring in January remained almost flat at $ 1.65 a gallon, and natural gas contracts expiring the same month rose slightly more than three cents to $ 2.26 per thousand cubic feet.

Leave A Reply

Your email address will not be published.