Oil rises as supply constraints outweigh China slowdown fears

OPEC projects to tighter oil market in 2019

WTI (oil futures on NYMEX) finally cracked the key resistance-turned-support at 64.00, as the sellers remain in command so far this Thursday, as the sentiment remains weighed down by mounting concerns over the economic slowdown and surging U.S. crude supplies.

Output declines in OPEC because of the supply pact, plus the sanctions on Venezuela and Iran, have exceeded expectations.

Current oil demand stands around 100 million bpd.

The report also said that Angola was one of China's three largest oil suppliers, together with Saudi Arabia and Russian Federation, with shares of 11.3%, 15.2% and 14.6% in February, respectively.

There is worldwide shortage in the oil market due to the interventions in production by the oil cartel OPEC.

In its April report the IEA maintained its forecast for oil demand growth in 2019 at 1.4 million barrels per day.

Both benchmarks notched a weekly gain of about 1 percent, which was Brent's third consecutive week of gains and the sixth straight rise for WTI.

Tesla's Poor 1st Quarter Gives Battery Supplier Cold Feet
Wall Street analysts have sounded the alarm in recent months about slowing demand for Tesla's electric vehicles. The company is scheduled to report first-quarter financial results on April 24.

It said that US, Brazil, Russia, UK, Australia, Ghana, Sudan and South Sudan will be the main drivers of supply growth this year.

Oil markets are tightening amid the increasing effectiveness of US sanctions on Iran and Venezuela, the International Energy Agency said yesterday.

However, the IEA warned that demand fell in developed OECD countries by 0.3 million barrels per day (bpd) in the last three months of 2018 - "the first such fall for any quarter since the end of 2014".

At the same time, the International Energy Agency (IEA) reported that OPEC production fell 550,000 bpd. It hit a session high of $64.65 earlier in a fresh attempt by long-oil hedge funds to reach the $65 target.

In December, OPEC and other major oil producers, including Russian Federation, pledged to cut production by 1.2 million barrels per day in order to prop up prices, effective from this January. Saudi Arabia is set on maintaining the production cuts into the second half of 2019, while Russian Federation refuses to commit to an extension.

Libya, which is also exempt from the deal, pumped 1.098 million bpd in March, up 196,000 bpd from the previous month, but output remains at risk as the country is on the brink of a possible civil war.

Related:

Comments

Latest news

Star Wars Jedi Fallen Order Story Details and Release Date Finally Revealed
Cal is hiding from the Empire after the fall of the Jedi and is working as a salvager on a new Star Wars planet named Braka. The hotly anticipated game from Apex Legends and Titanfall 2 developer Respawn was announced at EA's pre-E3 2018 event.

Five key talking points from the Chinese Grand Prix
Wolff has always been clear that his drivers are free to race as long as it is not at the cost of the team's overall result. He was later given the all-clear, but missed qualifying because his ruined vehicle could not be fixed in time.

London police open fire after vehicle rams Ukrainian ambassador’s auto
Police said a "standard procedure" investigation is now ongoing into the discharge of a police firearm during the incident. Armed police opened fire on a auto that drove into the Ukrainian ambassador's official vehicle in London this morning.

Criticism mounts of Trump pick for U.S. Federal Reserve
The president has already said he plans to unveil yet another conservative secretary, Stephen Moore , for a vacancy on the board. Neither nomination has been formally sent to the Senate but Trump has said he will put their names forward.

Phil Mickelson Fires A Shot At His Playing Partner Before Today’s Round
McIlroy played the par 5s in even - two bogeys, one par and an eagle on No. 8 that got him under par, but only briefly. No one who has covered the Masters for years can remember anything quite like this happening.

Chelsea fans barred from match after singing 'racist song' about Mo Salah
It is really a very good opportunity for our fans. "He must've just said something else that sounded like what I think I heard". Furious Stamford Bridge officials have warned that any further disturbances will lead to the "strongest possible action".

Kane unlikely to return this season, says Pochettino
Huddersfield were so limited in all areas, that Tottenham's make-shift line-up were able to play their way into rhythm. Nothing to do with what he's (had) in the past".

Second Brexit referendum vote could happen, says Hammond
The latest plan, in an agreement finalized this week at a summit in Brussels, is for the U.K.to depart the bloc by October 31. He angered them again recently by describing another Brexit referendum as a "perfectly credible proposition".

Sudan coup: Military reaches out to protesters
The leader was indicted by the International Criminal Court (ICC) after allegations of genocide in Sudan's Darfur region surfaced. Mr Ibn Auf was head of military intelligence during the Darfur conflict and the United States imposed sanctions on him in 2007.

Army of lawyers prepares for Assange extradition battle
Prosecutors in Sweden have since confirmed that, while the investigation has not been resumed, they are looking into the case. It added that "justice has already been denied" in some parts of the investigation because of Assange's unavailability.

Oil rallies as U.S. gasoline inventory draw offsets crude build
Futures fell as much as 1.6 percent in NY , a day after government data showed American crude inventories swelling to the highest since 2017.

Democrats prepare border bills, say Trump enflames problem
According to President Trump, the mass-migration crisis at the border has sparked a wave of violent crime and sexual assaults. Trump's false claim that child separations were carried out by the Obama administration has been frequently refuted .

Israeli Prime Minister Benjamin Netanyahu Wins Re-Election despite Pending Criminal Indictment
Mr Trump has already announced that Mr Netanyahu's victory means a "better chance" for the "deal of the century". Palestinian official Saeb Erekat lamented that the Israelis voted to maintain "the status quo ".

President Erdoğan calls for Sudan to restore peace, democracy
The head of the junta that seized power in 1989, Bashir dissolved the military council in 1993 and ruled with an iron fist. It was his first such speech since he imposed a state of emergency across the country in February.

Lok Sabha 2019: With 2.97 crore voters, Telangana all set to vote
Among the seven phases to he held, the first phase has the third biggest number of Lok Sabha seats going to polls. Odisha will see the Lok Sabha elections and Assembly elections simultaneously during the upcoming polls.

Other news