🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Oil Prices on Track for Weekly Gains of More Than 8%

Published 13/04/2018, 15:28
© Reuters.  Oil prices move higher on signs of market stabilization
LCO
-
CL
-
NG
-
NYF
-
GPR
-

Investing.com - Crude prices moved higher in mid-morning trade on Friday, heading for weekly gains of more than 8%, as traders digested another positive report on market stabilization.
New York-traded West Texas Intermediate crude futures gained 20 cents, or about 0.3%, to $64.27 a barrel by 10:27AM ET (14:27GMT).

Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., traded up 34 cents, or roughly 0.5%, to $72.36 a barrel.

OPEC and its allies appear to have accomplished their mission of bringing global oil stocks to desired levels, the International Energy Agency (IEA) said in its monthly report released Friday, predicting that inventories should drop to their five-year average -a metric used by OPEC to measure the success of output cuts- by as early as May.

"It is not for us to declare on behalf of the Vienna agreement countries that it is 'mission accomplished', but if our outlook is accurate, it certainly looks very much like it," the IEA said.

The IEA report followed up on OPEC’s monthly release on Wednesday that said the global oil inventory surplus is close to evaporating, having shrunk by nine-tenths since the start of 2017 due to the supply cuts and rising demand.

The pact runs until the end of 2018 but there is growing confidence that the cooperation will be extended into next year. OPEC will meet in June to decide on its next course of action.

Further buoyed by geopolitical tension over Syria earlier in the week, the U.S. benchmark was on track for weekly gains of 8.5%, while Brent was up around 8%. The move would be the largest weekly rise since last July.

In other energy trading, gasoline futures fell 0.3% to $2.0519 a gallon, while heating oil lost 0.1% to $2.0810 a gallon.

Natural gas futures gained 2.0% to $2.740 per million British thermal units.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.