Oil Prices Extend Gains Thursday as Brent Nears $62
By Adedapo Adesanya
Major oil prices on the global market continued their upward movement on Thursday after an unexpected decline in the US crude inventories influenced gains the previous day.
The appreciation was also backed by the prospect of policy that will supporting the global oil market as Organisation of Petroleum Exporting Countries (OPEC) and its allies clarified some concern over the outlook for oil demand.
As at Thursday night, the price of the Brent crude oil, the global benchmark, was up by 43 cents or 0.70 percent to trade at $61.60 per barrel, while the West Texas Intermediate (WTI) crude was up by 20 cents to sell at $56.17 per barrel, adding to gains achieved as a result US inventories dropped by 1.7 million barrels as at October 18.
The overall outlook for oil has continued to be affected due to broader economic uneasiness caused by the United States and China trade war tensions despite reaching an agreement for ‘phase one’ of the deal.
This took another hit as the US Vice President, Mike Pence on Thursday accused China, its main economic rival, of impeding the rights and liberties due to events in Hong Kong.
Also, as Brexit deadline at the end of October is fast approaching, the UK awaits judgement from Brussels on its extension request, one week before the country is due to leave the European Union.
Also, the commitment of OPEC and allied producers to curb supplies in December continued to support gains in oil prices on Thursday.
Business Post had reported earlier this month that OPEC Secretary-General, Mohammad Barkindo has said the oil cartel and its allies would do all it can to sustain oil market stability beyond 2020 by cutting output by 1.2 million barrels per day until March. The oil cabal and its allies are set to meet on December 5 and 6 in Vienna, Austria to review output policies.