Crude oil prices settled a little higher on Friday, regardless of concerns about possible drop in energy need in the near term due to global economic downturn.
Traders were weighing possible drop in demand for crude and recent data showing higher crude output in the U.S.
. The OPEC-driven production cuts and the U.S. sanctions on Venezuela’s oil market contributed to crude’s marginal increase in the session.
West Texas Intermediate petroleum futures for March ended up $0.08, or 0.2%, at $52.72 a barrel.
On Thursday, petroleum futures ended down $1.37, or 2.5%, at $52.64 a barrel, the lowest settlement in more than a week.
Petroleum futures shed as much as 4.6% in the week.
Information released by Energy Info Administration on Wednesday revealed that crude stocks increased by 1.26 million barrels recently. The increase, however, was less than what financial experts had anticipated.
Meanwhile, typical weekly U.S. petroleum production remained at the record 11.9 million barrels per day it reached in late 2018.
A report from Baker Hughes, launched this afternoon, said U.S. oil rigs count increased by 7 to 854 this week. Last week, the rig count saw a decline of 15.
Downward revision in development projections for the Euro area by the European Commission and the Bank of England and rising stress over U.S.-China trade tensions have actually raised worries about energy need.
Worries about trade tensions have actually increased following a report from Wall Street Journal, the U.S. and China don’t even have a draft accord that specifies where they disagree and concur.
Previously, reports stated that U.S. President Donald Trump will not meet with the Chinese President Xi Jinping prior to an important March deadline. Trump is priced quote as stating, “Not. Possibly. Probably too soon,” prior to lastly said, “No” when asked if the 2 leaders would meet prior to the due date.
U.S. Treasury Secretary Steven Mnuchin and other U.S. officials are arranged to travel to Beijing next week to continue the negotiations. Markets are still doubtful about the outcome as no significant progress has actually been made so far on the concern.
On Thursday, the European Commission slashed its GDP development projection for Eurozone for 2019 to 1.3% from 1.9% and reduced its quote for development in 2020 to 1.6% from 1.7%. The Bank of England too lowered its growth forecast for the Euro area.
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