Friday 9 August 2019

Oil rises on European stockdraw despite demand slowdown forecast - Reuters

Oil rises on European stockdraw despite demand slowdown forecast - Reuters:

Oil prices rose by about 3% on Friday, supported by a drop in European inventories and expectations of more OPEC output cuts despite the International Energy Agency reporting demand growth at its lowest since the financial crisis of 2008.

Brent crude LCOc1 futures gained $1.40, or 2.4%, to $58.78 a barrel by 10:55 a.m. EDT (1455 GMT). U.S. West Texas Intermediate (WTI) crude CLc1 futures were up $1.84, or 3.5%, to $54.38 a barrel.

“Despite a further cut in oil demand growth by the IEA, oil prices are trading marginally higher, as the demand growth cut was already announced previously by the head of the IEA and the agency still expects larger inventory draws for 2H19,” said UBS analyst Giovanni Staunovo.

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