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Oil Prices Steady After Last Week’s Gains

Oil Prices Steady After Last Week’s GainsOil Prices Steady After Last Week’s Gains

Oil prices were little changed on Monday following steady gains in the previous week with investors awaiting fresh clues over prospects for a trade deal between the United States and China, shrugging off concerns over steadily rising oil supplies.
Brent crude futures were at $63.30 a barrel, unchanged from the previous session. The contract rose 1.3% last week, CNBC reported.
West Texas Intermediate crude was also unchanged at $57.72 a barrel, having gained 0.8% last week.
Oil futures gained nearly 2% on Friday as comments from a top US official raised optimism for a US-China trade deal, but worries about increasing crude supplies capped prices.
The 16-month trade war between the world’s two biggest economies and oil consumers has slowed growth around the world and prompted analysts to lower forecasts for oil demand, raising concerns that a supply glut could develop in 2020.
According to Xinhua, China and United States had “constructive talks” on trade in a high-level phone call on Saturday.
The Organization of the Petroleum Exporting Countries said Thursday it expected demand for its oil to fall in 2020, supporting a view among market participants that there is a case for the group and other producers like Russia — collectively known as ‘OPEC+’ — to maintain limits on production that were introduced to cope with a supply glut.
A monthly report from the International Energy Agency released on Thursday put downward pressure on prices, after it estimated that non-OPEC supply growth would increase to 2.3 million barrels per day next year compared, with 1.8 million bpd in 2019, citing production from the United States, Brazil, Norway and Guyana.

 

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