US oil prices extend gains as equities rise, but economic worries weigh

US oil prices extend gains as equities rise, but economic worries weigh

US oil prices extend gains as equities rise, but economic worries weigh

In the oil market, traders are skeptical that OPEC's output cuts will be enough to balance supply and demand.

Global oil prices are struggling to move higher after sliding below $50 a barrel for the first time in more than a year.

Recalling the fact that back on November 5, the United States applied sanctions on Iran's oil exports in response to their nuclear programs, WTI crude oil market gained bullish momentum on the news as Iran is the third biggest producer of OPEC.

Brent fell 11 per cent last week and hit its lowest level since September 2017, while U.S. futures slid to their lowest level since July 2017, bringing the decline in the two contracts to more than 35 per cent for the quarter. Asian stock markets retreated again on Wednesday.

Crude has been caught up in wider financial market weakness as the USA government shutdown, higher us interest rates and the U.S.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russian Federation, agreed at a meeting earlier this month to limit output by 1.2 million barrels per day starting in January.

Brent for February settlement added $1.12/bbl to $51.59/bbl on the London-based ICE Futures Europe exchange after earlier dropping to as low as $49.93.

‘Zero’ has an estimated Rs 52-crore opening weekend
However, Aanand L Rai's directorial again witnessed a big growth in collection on day 5 (Tuesday) as it was Christmas holiday. If not the average Rs 20 crore of Fri-Sat-Sun, they must have at least expected somewhere close to it.

“I think that during the first half, due to joint efforts, which were confirmed by the OPEC and non-OPEC countries this December, the situation will be more stable, more balanced, ” Novak said in a Christmas interview on Rossiya-24 TV, according to Reuters .

Prices plunged $3.35 to $50.47 on Monday.

China also resumed crude imports from the U.S. after a halt in October as the trade conflict between the two countries showed signs of thawing. The contract slumped $3.06 to $42.53 on Monday. The global benchmark crude traded at a $7.57 premium to WTI. Total volume traded was about 19 percent above the 100-day average. With bearish signals about the global economy pervading oil markets, there is also a likelihood for further production cuts by OPEC and its allies next year, despite the recent production cut deal, he said.

OPEC is said to deepen output cuts.

Meanwhile, the US administration is struggling to contain the market turmoil, which intensified in the wake of a Bloomberg News report that Donald Trump had discussed firing Powell.

In wider financial markets, investors were still anxious as the S&P 500 Index of equities stands just 7 points away from completing a full-blown bear market drop.

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