Date: 20 November 2018 , 11:30
News ID: 2663

Slight Surge in Brent, WTI Prices

Oil prices rose by around 1% on Monday amid expectations that top exporter Saudi Arabia will push producer club OPEC as well as perhaps Russia to cut supply toward the yearend.
Slight Surge in Brent, WTI Prices

Front-month Brent crude oil futures were at $67.41 per barrel, up 65 cents, or 1%, from their last close. WTI crude, were up 76 cents, or 1.4%, at $57.22 per barrel, CNBC reported. 

“Oil prices continued to recover...(as) the market will be watching closely for the possible impact of a supply cut.” said Sukrit Vijayakar, director of Indian energy consultancy Trifecta. 

OPEC, de facto led by Saudi Arabia, is pushing for the producer group and allies to cut 1 million to 1.4 million barrels per day of supply to adjust for a slowdown in demand growth and prevent oversupply. 

Russian Energy Minister Alexander Novak said Monday that Russia, which is not an OPEC member, was planning to sign a partnership agreement with the group, and that details would be discussed at OPEC’s Dec. 6 meeting in Vienna. 

Despite Monday’s gains, crude prices remain almost a quarter below their recent peaks in early October, weighed down by surging supply and a slowdown in demand growth. 

This comes in part after Washington granted Iran’s major oil customers, mostly in Asia, unexpectedly broad exemptions to sanctions it re-imposed on Tehran in November.