- Kuwait’s oil minister says they are fully committed to reducing oil output.
- Concerns over global economic outlook continue to weigh on crude oil.
- US-China trade conflict remains center of attention in near-term.
Crude oil prices started the new week under modest pressure but was able to gain traction in the last few hours with the barrel of West Texas Intermediate looking to extend its winning streak into a third straight trading day. As of writing, the WTI was up 1.05% on a daily basis at $54.78.
Although the dismal global economic outlook and concerns over its negative impact on the energy demand make it difficult for crude oil to rise sharply, OPEC and its allies continue to voice their commitment to balance the oil market by reducing supply.
Earlier today, Kuwait’s oil minister Khaled al-Fadhel said his country was “fully committed” to implementing an agreement between oil-exporting countries to cut production in order to support crude prices. Regarding the current state of the market, “Fears of a global economic downturn, which have weighed down on prices, are exaggerated,” al-Fadhel argued.
Crude oil recovery seems fragile
Meanwhile, Moody’s today in a report noted that the United States’ increasing tariffs on Chinese imports were raising the prospect of a slower economic expansion in 2020 both for the US and China. Similarly, Germany’s Ifo Economic Institue in its quarterly survey said the economic outlook has deteriorated worldwide amid the escalating trade dispute between the US and China.
Later this week, industrial production data and retail sales data from China on Wednesday will be watched closely as well as the American Petroleum Institue’s and the Energy Information Administration’s weekly crude oil stock reports.
Technical levels to watch for
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