Oil prices close higher on last day of 2018

Oil prices climbed on the last trading day of the year on Monday, mirroring gains in stock markets, but were on track for the first yearly decline in three years amid lingering concerns of a persistent supply glut.

Hints of progress on a possible U.S.-China trade deal helped bolster sentiment, which has been battered by concerns over a weaker global economic outlook.

Brent crude futures – the international benchmark for oil prices – rose 56 cents, or 1.1 per cent, to $53.77 a barrel by 0420 GMT. Brent declined nearly 20 per cent in 2018 following two years of growth.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $45.77 a barrel, up 44 cents, or 1 per cent, from their last close. WTI is down about 24 per cent this year.
Crude prices have been closely tracking equity markets during volatile trading for both asset classes last week.

“Investors are looking for bargains in an illiquid market (today)… If Trump gets over trade issues with China expect economic demand to surge,” said Jonathan Barratt, chief investment officer at Probis Securities in Sydney.

U.S. President Donald Trump said he had a “very good call” with Chinese President Xi Jinping and that a possible trade deal between the United States and China was progressing well.

“China is still the best bet for global economic growth. Anything that severely pinches China will inevitably hurt global growth and, as a consequence, oil consumption,” said Sukrit Vijayakar, director of energy consultancy Trifecta.

The current downward pressure on oil prices should likely taper off from January, when OPEC-led supply cuts commence, analysts said.

Earlier this month, the Organisation of the Petroleum Exporting Countries (OPEC) and its allies including Russia, agreed to curb output by 1.2 million barrels per day starting in January to clear a supply overhang and prop up prices.

The group of producers “may hold out on supplies longer than reasonable in order to see if they can effect a rally similar to September-October this year,” Vijayakar said.

Brent hit a four-year high of $86.29 a barrel on Oct. 3 and has fallen about 38 percent since then.

While a gentle recovery is expected for prices in the first quarter 2019, the market might still remain under pressure from swelling production in the United States, which has emerged as the world’s biggest crude producer this year.

Italy opposition protests outside parliament against government budget
U.S. shale production levels would be one of the primary drivers of crude markets going forward, said Benjamin Lu Jiaxuan, commodities analyst at Singapore-based brokerage firm Phillip Futures.

The market direction might get dictated if U.S. shale producers disregard bearish signals in oil prices and push for higher output next year, Jiaxuan said.

Energy companies in the United States added two oil drilling rigs in the week to December 28, bringing the total count to 885. That was up from 747 a year ago.

Total Page Visits: 2929 - Today Page Visits: 1


  1. Fantastic site you have here but I was curious if you knew of
    any message boards that cover the same topics talked about in this
    article? I’d really love to be a part of online community
    where I can get comments from other knowledgeable individuals
    that share the same interest. If you have any suggestions, please
    let me know. Cheers!

  2. I like the helpful info you supply for your articles.
    I’ll bookmark your blog and take a look at once more right here regularly.
    I’m quite sure I’ll learn many new stuff proper right here!
    Best of luck for the following!

  3. Very great post. I just stumbled upon your blog and wanted to say that I’ve really
    enjoyed browsing your weblog posts. After all I will be subscribing in your rss feed and I’m hoping you write once more soon!

  4. I just want to tell you that I am just very new to weblog and actually loved you’re web-site. Almost certainly I’m want to bookmark your blog post . You really have very good writings. Kudos for sharing with us your web-site.

  5. I have been surfing online more than 3 hours lately, yet I by no means discovered any interesting article like yours. It¡¦s beautiful worth enough for me. In my view, if all web owners and bloggers made excellent content as you probably did, the web might be much more helpful than ever before.

  6. In my view, energyworthonline.com does a great job of handling issues of this sort. While frequently intentionally contentious, the posts are more often than not well-written and stimulating.

  7. In my view, energyworthonline.com does a excellent job of dealing with subject matter of this sort. While frequently intentionally contentious, the posts are more often than not well-written and thought-provoking.

  8. This is very worthwhile, you’re a very skilled blogger.I have joined your rss feed and look forward to reading more of your excellent post.Also, I have shared your website in my social networks!

  9. I am really loving the theme/design of your blog.

    Do you ever run into any browser compatibility issues? A few of my blog audience have complained about my site not
    working correctly in Explorer but looks great in Chrome. Do you have any advice to help fix this

  10. Hi there, just changed into alert to your blog thru Google, and located that it is really informative. I’m going to watch out for brussels. I’ll appreciate if you happen to proceed this in future. Many folks will be benefited out of your writing. Cheers!

  11. I know this if off topic but I’m looking into starting my own blog and was wondering what all is needed to get set up? I’m assuming having a blog like yours would cost a pretty penny? I’m not very web smart so I’m not 100 positive. Any recommendations or advice would be greatly appreciated. Cheers

Leave a Reply