Investing.com – Oil traders will continue to monitor global crude supplies and the outlook for energy demand in the week ahead.
Futures scored their biggest weekly gain in six months last week thanks to data showing output declines among major oil producers and a weekly fall in U.S. crude inventories. Optimism surrounding a possible resolution to the U.S.-China trade dispute also contributed to gains.
U.S. ended Friday’s session down $1.00, or 1.9%, at $51.59 a barrel on the New York Mercantile Exchange. WTI earlier rose to its best level since Dec. 7 at $53.31.
For the week, the U.S. benchmark rose about 7.6%, its biggest weekly gain since June.
Meanwhile, the global benchmark, for March delivery on the ICE (NYSE:) Futures Europe exchange, shed $1.20, or around 2%, to settle at $60.48 a barrel. Brent reached a five-week high of $62.49 earlier in the session.
It rallied about 6% for the week.
Overall, the recent advance for the energy complex has been powered by a from major producers.
Saudi Arabia-led OPEC and its non-member allies led by Russia agreed to collectively cut production by a total of 1.2 million barrels per day (bpd) during the first six months of 2019 in an effort to stave off a global glut in supplies.
Fresh weekly data on U.S. commercial crude inventories and production activity will capture the market’s attention this week.
The Energy Information Administration (EIA) reported last week that domestic crude supplies declined by 1.7 million barrels.
Offering a hint on U.S. production activity, Baker Hughes reported Friday that the number of domestic rigs drilling for oil fell by 4 to 873 in the week to Jan. 4.
It was the second straight weekly decline in the rig count, suggesting a slowdown in crude production.
Market players will also focus on monthly reports from OPEC and the International Energy Agency (IEA) this week to assess global oil supply and demand levels.
Ahead of the coming week, Investing.com has compiled a list of the main events likely to affect the oil market.
Tuesday, Jan. 15
The is to publish its weekly update on U.S. oil supplies.
Wednesday, Jan. 16
The will release its weekly report on oil stockpiles.
Thursday, Jan. 17
The will publish its monthly assessment of oil markets.
Friday, Jan. 18
The will release its monthly report on global oil supply and demand.
Later in the day, {{0|}} will release weekly data on the U.S. oil rig count.
— Reuters contributed to this report
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Source: Investing.com
