Oil prices rose yesterday, tracking gains in stocks as investors pinned hopes on a possible deal between Britain and the European Union on its exit from the bloc along with indications from OPEC and its allies that further production cuts may be possible, but gains were limited by persistent fears of a slowdown global economic.Brent crude futures rose 25 cents to $ 58.99 a barrel, up 0.4 percent from the previous day's close. US West Texas Intermediate (WTI) crude was up 23 cents, or 0.4 percent, at $ 53.04 a barrel.
Oil analysts believe OPEC + producers may be on the verge of further cuts during the December meeting, especially given the expectations of the International Energy Agency, the US Energy Information Administration and OPEC, the rise in global inventories during the first half of next year, they also cut their forecasts for oil demand growth for 2019 and 2020.
"Oil prices continue to receive strong support from OPEC positions that seek to support stability and provide the market with a safe and sufficient supply," Mufid Mandra, vice president of Austrian energy company LMF, told Al-Eqtisadiah. Expectations of deepening current production cuts have tightened supply and reduced fears of a repeat of market glut, which in turn has led to a return to price gains.
Mandra added that "Chinese demand maintains strong levels despite fears of slowdown and recession prevalent in the market, and Chinese demand has overcome the problem of sanctions on Iran and the decline of oil exports sharply after Beijing turned its attention - at least for the time - to Baghdad, where China enjoys in Iraq with numerous advantages, which kept the demand for oil, "OPEC" strong in the second-largest oil consumer in the world."
For his part, says for "economic", Rudolf Huber, a researcher in energy affairs and director of a specialized sites, "The repercussions of the commercial war continued and wide, and concern for growth, especially increasing after the International Monetary Fund cut its forecast for global growth again, predicting that economic growth will fall to weaker rate since the financial crisis a decade ago. "
Hopper pointed out that the challenges of growth are not limited to the trade war between the United States and China, but there are other factors strongly influenced by the Brexit, which will raise the degree of economic risks and financial turmoil and curb growth in emerging market economies, pointing out that the spread of concerns in the oil market currently has cast a strong shadow on the fundamentals of the market and the difficulty of assessing the situation in light of these tensions and successive changes.
For his part, explained for "economic", Robin Noble, director of international company "Ooxeira" Consulting, the case of abundant supplies have returned strongly to dominate the private market with the return of oil production in Saudi Arabia this month, to what it was before the attacks on the stations Abqaiq oil and Khurais 14 September, which signals a noticeable rise in global inventories over the first half of next year.
Noble said that there is considerable pressure on prices and market balance, especially taking into account the significant reductions by international institutions in their assessments of demand growth during the first half of the next, which forces move towards more restrictions on supplies to ensure price coherence and balance of supply and demand.
“Economic bets and assessments of the global economic situation point to a large-scale slowdown in the world's largest economies, where trade tensions are undermining growth,” says Gulmira Razeva, senior analyst at Azerbaijan's Strategic Energy Center. OPEC production last September did not help much to deplete the stockpiles, which are still high and is likely to record further rises next year, pointing out that there are two important factors can be reliable to avoid building the growing stock in the first half of 2020, Achieve further m Demand or supply reduction or both, explaining that the trade deal between the United States and China could provide a boost to the global economy and thus boost levels of oil demand.
