Oil jumps 1% on OPEC production cuts

Friday, 18. January 2019 08:27

Crude futures jumped over 1% on Friday, reaching the highest levels since the end of last week, after a report from the Organization of the Petroleum Exporting Countries (OPEC) showed the cartel and other major oil producers led by Russia reduced output in December. OPEC noted that its production in the last month of 2018 dropped by 751,000 barrels per day to 31.58 million barrels per day.

Furthermore, Russian Energy Minister Alexander Novak said his country will try to accelerate the cuts in its crude production in order to honor the new OPEC+ deal whose implementation began this month in an effort to balance the market. Crude prices were also boosted by signals of a likely breakthrough in trade talks between the United States and China as Bank of Japan Governor Haruhiko Kuroda reportedly stated he expects the Beijing-Washington trade dispute to end by the end of 2019.

Brent for March delivery climbed 1.05% to sell for $61.77 per barrel at 8:14 am CET and West Texas Intermediate (WTI) rose 1.06% to go for $52.62 per barrel at 8:15 am CET.

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