US oil prices were back earnings Monday, after last week saw the worst one-day loss for the futures contract in about three years, as investors struggled with supply problems leading up to an OPEC meeting.
The prices seem to recover their substantial losses from the end of last week, but "the downward pressure on oil is still the result of rising demand and a slowdown in demand growth, which is expected to result in an oversupply of oil stocks by next year, "analysts at ICICI Bank wrote in a Monday paper.
January West Texas Average crude oil
CLF9, + 2.99%
rose $ 1.70, or 3.4%, to $ 52.12 per barrel on the New York Mercantile Exchange. In a holiday shortened session on Friday, the contract plummeted 7.7% to settle at $ 50.42, the worst session since July 6, 2015 and the lowest settlement since October 9, 2017, according to Dow Jones Market Data. It also marked the seventh-straight weekly drop-a decrease of 10.6%.
Worldwide benchmark January Brent
LCOF9, + 3.35%
was also recovering Monday, up from $ 2.10, or 3.6%, to $ 60.90 per barrel on ICE Futures Europe, after closing 6.1%, to $ 58.80 per barrel Friday. Brent lost almost 12% during the week.
Perceived riskier assets such as oil and equities, which were also tapped last week, could be boosted as a meeting between US President Donald Trump and Chinese President Xi Jinping at the Group of 20 in Argentina later this week a long time. -provided breakthrough in the trade.
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"Next [the] Xi-Trump G-20 meeting, today's gossip swirling about Saudi and Russian oil ministers who are reportedly planning a trip to Buenos Aires, evoking the hope that some sort of rebalancing agreement is coming to fruition, "said Stephen Innes, head of trade in Asia and the Pacific at Oanda, in a note to customers.
The oil market is awaiting a meeting of members of the Organization of the Petroleum Exporting Countries scheduled for December 6, which is overshadowed by concerns about a threatening global oil spill. The cartel could consider a solution to rebalance the provision, but the prices would not jump higher, by maintaining output targets set in 2016, The Wall Street Journal reported by citing sources.
Among other contracts, December natural gas
continued to slip on Monday with a fall of 14.6 cents or 3.4% to $ 4.162 per million British thermal units, after rising by 0.8% last week, despite a drop of more than 3% Friday.
RBZ8, + 4.23%
increased by 4% to $ 1,447 per gallon, after a withdrawal of 11.8% last week, the largest percentage since February 2016. The contract fell by almost 8% on Friday, the sharpest decline with a percentage since 2 February 2009.
December fuel oil
HOZ8, + 1.86%
increased by 1.7% to $ 1.908 after 9.5% last week. The contract reached 4.8% on Friday, to $ 1.8762 per gallon, the lowest settlement for a month contract since March.
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