Oil prices rise after OPEC-led group seals 1.2 million bpd supply cut
By Trend
Oil prices rose on Monday, extending gains from Friday when producer club OPEC and some non-affiliated producers agreed a supply cut of 1.2 million barrels per day (bpd) from January, Trend reports citing Reuters.
International Brent crude oil futures were at $62.15 per barrel at 0129 GMT, up 48 cents, or 0.8 percent, from their last close.
Prices surged on Friday after the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including heavyweight Russia announced they would cut oil supply by 1.2 million bpd, with an 800,000 bpd reduction planned by OPEC-members and 400,000 bpd by countries not affiliated with the group.
US West Texas Intermediate (WTI) crude futures were at $52.66 per barrel, up 4 cents, held back more than Brent as the booming US oil industry is not taking part in the announced cuts.
The OPEC-led supply curbs will be made from January, measured against October 2018 output levels.
“Our key conclusion is that oil prices will be well supported around the $70 per barrel level for 2019,” analysts at Bernstein Energy said on Monday.
Despite the cuts, that was still a price forecast reduction of $6 per barrel as Bernstein reduced its crude oil demand forecast from 1.5 million bpd previously to 1.3 million bpd for 2019.
Oil prices have been pulled down sharply since October by signs of an economic slowdown, with Brent losing almost 30 percent in value.