WTI clings to recovery gains a little below $54 ahead of API
|- EIA cuts 2019 and 2020 demand forecasts.
- OPEC in its monthly report says that output in January fell by nearly 800K barrels per day.
- Coming up: Weekly API report from the U.S.
The barrel of West Texas Intermediate lost 4.8% last week as crude oil struggled to find demand amid concerns over the potential negative impact of the global economic slowdown on the oil demand. After staying relatively steady on Monday, the barrel of WTI gained traction on Tuesday and recorded decisive gains after the monthly OPEC report showed a higher than expected reduction in the output and revived hopes of the additional cuts helping the market find balance in the near term.
In its monthly publication, OPEC reported that the oil output in January fell nearly by 800,000 barrels per day to 30.81 million bpd. "Some recent positive developments could support the global economy at its current level, including the recovery in oil prices, possible progress in U.S.-China trade negotiations and less-ambitious monetary tightening by the U.S. Federal Reserve," OPEC explained (source: Reuters).
Although OPEC headlines allowed the WTI to climb to the $54 area, the U.S. Energy Information Administration's monthly report painted a gloomy picture regarding the demand outlook and caused the coımmodity to erase a small part of its daily gains. As of writing, the WTI was up 1.95% on the day at $53.78. The EIA said that it cut both the 2019 and 2020 global demand growth forecast by 50,000 barrels per day to 1.49 million bpd and 1.48 million bpd, respectively.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.