Oil prices inch up on Saudi output cut, but slowing economic growth drags

0
31
© Reuters. FILE PHOTO: A drilling oil rig seen near Midland Texas© Reuters. FILE PHOTO: A drilling oil rig seen near Midland Texas

By Henning Gloystein

SINGAPORE (Reuters) – Oil prices rose on Tuesday after a report from confirmed that top exporter Saudi Arabia had cut production to avert looming oversupply.

Front-month Brent crude oil futures () were at $72.81 per barrel at 0515 GMT, up 20 cents, or 0.3 percent, from their last close.

U.S. West Texas Intermediate () () were up 25 cents, or 0.4 percent, at $67.45 per barrel.

Article continues below Advertisement...

In July, Saudi Arabia told the producer group of the Organization of the Petroleum Exporting Countries (OPEC) that it had cut production by 200,000 barrels per day (bpd) to 10.288 million bpd.

OPEC’s monthly report published on Monday, which uses data from secondary sources, confirmed the Saudi cut, which traders said triggered crude’s upward move early on Tuesday.

That came despite the Saudi move coming in anticipation of a slowdown in oil demand.

The OPEC report said it expected world oil demand to grow by 1.43 million bpd in 2019, down from 1.64 million bpd in 2018.

OPEC said the demand slowdown would come on the back of potentially lower as a result of trade disputes between the United States and as well as emerging market turmoil.

China’s economy is showing further signs of cooling as the U.S. prepares to impose even tougher trade tariffs, with investment in the first seven months of the year slowing to a record low and retail sales softening, data showed on Tuesday.

“Data from China failed to meet market expectations, which could be another signal that the world economy is slowing down,” said Sukrit Vijayakar.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the , it is one of the riskiest investment forms possible.

Source: Investing.com