Today, oil prices have continued its rise yet again for its eighth straight session as the Opec cuts in the New Year and hopes that the trade negotiations between the United States of America and China pushed the prices up.
Brent crude was able to recover back through the $60 per barrel milestone for the first time in a period of three weeks as it gained approximately 2.8 percent by mid-afternoon. However, by 4pm the international standard had given up some of its gains, dropping back to $59.71 per barrel.
David Madden, an analyst at CMC, stated: “The Energy Information Administration report encouraged traders to take some profit on oil. The energy gave back some of the ground made after it was reported that oil inventories dropped by 1.68 million barrels, and that gasoline stockpiles surged by over 8 million barrels.”
Meanwhile, WTI crude, the US standard, gained 1.99 percent to $50.77 per barrel.
The oil prices rose as Khalid al-Falih, the oil minister of Saudi Arabia, informed reporters that the country could reduce its exports by 100,000 barrels per day this month to 7.1 million next month.
The kingdom is spearheading the efforts by Opec, the oil producing cartel, to reduce oil production and push the prices up.
Fiona Cincotta, at City Index, stated: “Though traders are explaining [the rise] away with the fact that Saudi Arabia and Russia have agreed to reduce production this quarter, an element of the rise has to do with new position taking at the start of the year and bargain hunting after the oil price flirted with the $50 level in late December.”