By Srinivas Chowdary Sunkara // petrobazaar // 23rd Feb, 2019.
Brent closed 5 cents up at $67.12 after touching 2019 highs and WTI settled 30 cents up at $57.26 a barrel on Friday. Both the crude markers ended the week with gains for the second consecutive week juiced by an optimism over U.S-China trade deal. During the week, Brent advanced 1.31 pct and U.S crude gained 2.98 pct as the trade sentiment and OPEC cuts added bullishness to oil markets while surging U.S production limited the gains. Baker Hughes reported a draw of 4 oil rigs this week after adding for last three weeks.
I liked the recent FIS comment that “The oil market is moving like a greyhound out of trap, Running after a fake hare that is 'expected oil shortage' “. The above statement is justified by the fact that while the OPEC is waving around a supply cuts of 80000 bpd, U.S production reached record high of 12 Mbpd and is expected to pump 13 Mbpd by 2019 end, Which will eventually cause a big drag on prices. OPEC should go for further cuts to counter the U.S production march, If so, The producers council need to prepare to risk the fragile nature of oil dependent economies. Let us see.
Good day and happy week end.
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