Oil has been trading in a tight range this month, with prices hovering around $60 a barrel as rising U.S. output continues to stoke fears that a shale boom will limit price increases. Still, the Organization of Petroleum Exporting Countries and allied producers are continuing production cuts in an effort to drain a global glut and help prop up prices. A robust global economy has also led banks including Goldman Sachs Group Inc. to project strong demand for oil this year. The IEA raised its estimate for global oil demand growth by 90,000 barrels a day to 1.5 million a day in 2018 as a stronger outlook for developed economies offsets weakening expectations for emerging nations. Steady growth was also reflected in the American Petroleum Institute’s latest report showing U.S. oil consumption rose to the highest in 11 years even as crude production hit a new monthly record. Click Read More below for additional information.
Demand-side optimism picked up after the Caixin-Markit China manufacturing purchasing managers index rose above 50 in March, indicating growth. February’s reading came in below 50, which showed economic contraction.
“We have a bullish setup to the week as U.S. sanctions on Iran and Venezuela — combined with OPEC+ apparent unwavering compliance, although some fissure is arguably appearing at the seems as Russia’s long-term commitment remains a big question — should keep oil prices in check,” said Stephen Innes, head of trading and market strategy with SPI Asset Management.
more detail at source: https://www.marketwatch.com/story/firmer-oil-prices-add-to-best-quarterly-performance-in-nearly-a-decade-2019-04-01