Oil prices bounce amid Russia's output cut, Lybia's production shutdown

At the same time, the forecast for supply growth for 2019 has been lowered by 80,000 barrels per day, to 2.16 million barrels, due to the fact that Canada will limit production, and also against the OPEC + agreement to reduce daily production by 1.2 million barrels in the first half of 2019.

"A large part of the move (lower) is due to a broader market sell-off, with both USA and Asian equity markets coming under pressure", said commodities strategist Warren Patterson at Dutch bank ING in Amsterdam. USA light crude CLc1 was 50 cents lower at $50.65. That followed a almost 11 per cent drop in October.

Analysts at FGE are saying that prices were "likely to hover in the $55-60 per barrel range for Brent, with WTI sitting some $5-10 per barrel below this, given current fundamentals". Crude rose on Wednesday to trade above $61 a barrel. U.S. West Texas Intermediate crude futures were at $52.16 U.S. per barrel, up 51 cents, or 1%.

On Wednesday, the API reported a massive build of -10.180M million barrels inventories, compared with analysts' expectations for -525K barrels draw.

Oil prices rose on Thursday, buoyed by a drawdown in USA crude inventories and signs that China is taking more concrete steps to put a trade war truce with Washington into action. Still, stockpiles at the storage hub of Cushing, Okla., gained 642,000 barrels last week, according to API. Gains from Saudi Arabia and the U.A.E. offset steep declines in Iran, which were the result of US sanctions against the Islamic Republic's oil industry, the IEA said.


Meanwhile, stocks rallied globally on signs of a positive outlook for trade talks.

A Canadian court granted bail to the chief financial officer of Chinese tech-giant Huawei Technologies Co., allowing the executive to stay in her Vancouver, British Columbia, home as she awaits a possible extradition to the United States over fraud charges.

"That said, OPEC itself raises doubts in its monthly report as to whether the agreed cuts will be sufficient".

A third OPEC watcher, who also saw the deal as vague, cited the potential for unplanned output losses such as at Libya's Sharara oilfield to give tailwind to pledges of lower supply.

Oil prices dipped on Thursday in tepid trading ahead of a meeting by producer group OPEC that is expected to result in a supply cut aimed at draining a glut that has pulled down crude prices by 30 percent since October. Gasoline futures in NY increased for a second day to $1.4649 a gallon after rising 1.5% on December 11.


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