Crude oil rises back to $60 per barrel

Published: January 9, 2019
Price goes up after output cut, easing fears of weak demand growth. PHOTO: REUTERS

Price goes up after output cut, easing fears of weak demand growth. PHOTO: REUTERS

LONDON: Benchmark oil contract Brent North Sea crude climbed back to $60 per barrel on Wednesday, with the Organisation of the Petroleum Exporting Countries (OPEC) cutting output and on easing concerns over weak demand growth.

Around 0940 GMT, Brent crude for delivery in March hit $60 for the first time in 3.5 weeks and was up 20% compared with two weeks ago, prior to an oil production cut by OPEC and non-cartel producers from January 1.

After reaching $60.05, Brent cooled slightly to $59.79, up $1.07 from Tuesday’s close.

Oil prices decline on oversupply, volatile markets

Brent and the world’s other key contract, West Texas Intermediate (WTI), slumped late last year, hitting 18-month low points at $49.93 and $42.36 per barrel respectively.

WTI for February delivery was up $1.23 on Wednesday to $51.01 per barrel.

OPEC – a cartel of producer countries that has long manipulated output of the commodity to influence global prices in members’ favour – and non-OPEC members, notably Russia, in December agreed to trim production by 1.2 million barrels a day from the start of this year to shore up sagging prices.

OPEC and its partners, which together account for around half of global output, have presided over a glut in the market which had led to oil prices tumbling by more than 30% between October and December.

Facebook Conversations

Leave Your Reply Below

Your comments may appear in The Express Tribune paper. For this reason we encourage you to provide your city. The Express Tribune does not bear any responsibility for user comments.

Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments FAQ.

More in Business