Oil demand in 2019 can withstand moderate economic slowdown but forecast vulnerable, says IEA

Global oil demand is expected to be stronger this year than in 2018 as lower prices soothe the impact of slowing economic activity, but that forecast remains vulnerable to a deeper pullback, the International Energy Agency wrote Friday. Hopes for a global trade resolution, particularly between major energy consumers China and the U.S., as well as a moderating U.S. dollar, the main vehicle for commodities pricing, are behind the cautiously upbeat forecast. But the agency acknowledged that “the mood music in the global economy is not very cheerful” and the demand outlook for the energy industry could change, it said in the update issued Friday. “We have seen prices fall very significantly since the peak at the beginning of October, and that is providing some relief to consumers,” Neil Atkinson, head of the IEA’s oil industry and markets division, told Bloomberg TV Friday. Click read more below for additional detail.
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OPEC oil output drops in December as producers got a jump on pledged cuts

Oil production by OPEC fell in December as members appeared to get a jump on their pledge and that of close non-cartel producers to cut daily output beginning in January as global oil prices plunged. OPEC’s oil output fell by 751,000 barrels per day to 31.6 million barrels per day in December, the Organization of Oil Exporting Countries said in its monthly report out Thursday. Last month, OPEC struck a deal with major producer Russia and nine other nations to keep 1.2 million barrels per day out of the market starting in January. Click read more below for additional detail.
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Oil edges down on worries over global economy, supply glut

Oil prices edged down on Wednesday having climbed about 3 percent in the previous session, with worries about the global economy and forecasts of swelling U.S. production hurting sentiment. U.S. crude output is expected to rise to a new record of more than 12 million barrels per day this year, the Energy Information Administration said on Tuesday, adding that the U.S.will become a net crude exporter in late 2020. The forecast could undermine oil markets which have been receiving support from supply cuts by the Organization of thePetroleum Exporting Countries, including top exporter Saudi Arabia, and major non-OPEC producer Russia. Click read more below for additional detail.
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Oil prices rise over 1 percent, but global slowdown looms

Oil prices rose more than 1 percent on Tuesday after tumbling the previous session, although a darkening economic outlook may soon weigh on growth in fuel demand. “Any price rally is unlikely to be sustainable in the first half of the year simply because the demand for OPEC’s oil is expected to be lower than the projected output from the organization,” PVM Oil Associates strategist Tamas Varga said. The Middle East-dominated Organization of the Petroleum Exporting Countries and allies including Russia agreed in late 2018 to cut supply to rein in a global glut. The cuts were effective from January. Click read more below for additional detail.
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U.S. oil slips, set for back-to-back decline amid signs of fresh China weakness

Crude-oil futures on Monday were on pace to decline firmly, as global equity markets pulled back on further signs of weakness in the world’s second-largest economy, China. Data showed weak China imports and exports for December, which underpinned worries of a slowdown in the global growth engine—a potential negative for oil demand. Moreover, China’s trade surplus with the U.S. soared to a fresh record of $323.32 billion in 2018, amid Washington’s trade spate with Beijing. Click read more below for additional detail.
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Oil prices lifted for 10th day as dollar softens

Crude prices gained modestly Friday, helped by a weaker dollar, putting the U.S. benchmark on track for a 10-day winning streak that would be its longest since December 2016. A move higher in the last few minutes of trading on Thursday allowed oil futures to notch a ninth straight session of gains, the longest winning streak in about nine years for the U.S. benchmark and in more than 11 years for global crude prices. The recent advance for the energy complex has been powered by optimism over U.S.-China trade talks, as well as a December output drop from major producers and a more-recent decline in U.S. crude inventories. OPEC oil production fell by 630,000 barrels a day to a six-month low of 32.43 million barrels in December, according to an S&P Global Platts survey released earlier this week. Click read more below for additional detail.
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