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| Commodity News |
| HeadLine : |
Oil climbs on U.S.-China trade optimism, Middle East tensions |
| Date : |
Jan 2 2020 |
Global benchmark Brent crude futures (LCOc1), were up 21 cents, or 0.3%, to 66.21 a barrel. U.S. West Texas Intermediate (WTI) crude (CLc1) was up 21 cents, or 0.3%, at $61.27 per barrel. Oil markets were closed on Wednesday for New Year's Day. Both benchmarks ended higher in 2019, posting their biggest annual gains since 2016, buoyed at the end of the year by a thaw in the prolonged trade dispute between the United States and China - the world's two largest economies - and a deeper output cut pledged by the Organization of Petroleum Exporting Countries (OPEC) and its allies. Geopolitical risks remain in the Middle East after U.S air strikes against the Iran-backed Katib Hezbollah militia group over the weekend. In 2020, Brent is forecast to average $63.07 a barrel, up from December's estimate of $62.50, while WTI is forecast to average $57.70 a barrel, up from December's estimate of $57.30, as the OPEC-led supply cuts and the expectations of a U.S.-China trade deal boosted analysts' views on the prospects for the year, a Reuters poll showed. January also marks the start of the deeper output cuts by OPEC and its partners, including Russia. OPEC and its allies have agreed to cut a further of 500,000 barrels per day (bpd) from Jan. 1, on top of their previous cut of 1.2 million bpd that started on Jan. 1 a year ago.
Source : Investing
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