By Srinivas Chowdary Sunkara // petrobazaar // 4th Dec, 2018.
Brent surged $2.03 or 3.4 pct to close at $61.69 and U.S crude went up by $1.4 or 2.72 pct to settle at $52.95 a barrel last night. Oil markets took strong breath in after U.S and China shook hands and decided to pause trade war for next 90 days in G-20 meet. This Truce news from Argentina created a positive sentiment in the oil market and both the benchmarks gained above 5 % in the early hours of trading on Monday as the market reacted very strongly.
Oil prices were also supported by the cuts talk from Argentina to Alberta. Western Canadian province announced production cuts to deal with pipeline bottlenecks. During the day, The upside momentum was limited by looming over supply question particularly from U.S. Another hiccup to OPEC ahead of the scheduled key meeting is that Qatar announced to quit producer's club, Citing the reason to focus on its LPG market. Insiders analysed Qatar's decision shows the frustration of small producers at the dominant role of a Saudi and Russia led panel. Saudi, The de-facto leader of OPEC is under pressure from U.S on cartel's production policy decisions.
Turning to weekly stats, The industry group, API is scheduled to release U.S crude numbers today. Market is focused on the OPEC and non-OPEC producers meet to take direction. Today, Asian markets opened in green and extended gains at the time of reporting. Have a good day,
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