Energy Minister of Russia Alexander Novak is discussing with crude oil firms on Tuesday the possible extension of the current crude oil production cuts beyond this June, sources with knowledge of the meeting’s agenda told Reuters.
Texas crude oil companies may soon cut back production, both because of a looming lack of available storage space and because wells are becoming uneconomical at $20 per barrel WTI. Many regional grades are trading lower than that–approaching negative territory.
On Wednesday oil prices rose, pushed up by ongoing supply cuts from producer group OPEC and by US sanctions against Iran and Venezuela. International Brent crude oil futures were at $66.95 a barrel at 0751 GMT, up 28 cents, or 0.4 percent, from their last close.
On Tuesday US oil prices inched, buoyed by expectations of tightening global supply amid U.S. sanctions on Venezuela and production cuts led by OPEC. U.S. West Texas Intermediate (WTI) crude futures were at $54.73 per barrel at 0020 GMT, up 16 cents from their last settlement. They closed down 1.3% on Monday, after earlier touching their highest since Nov. 21 at $55.75 a barrel.
The top refiner of country, Indian Oil Corporation, is looking for an annual deal to buy US crude as it seeks to broaden its oil purchasing options, its chairman said on Wednesday, amid uncertainties over imports from Iran.
On Wednesday US crude oil prices rose above $50 per barrel for the first time in 2019 on hopes that Washington and Beijing can resolve a trade dispute that has triggered a global economic slowdown. US West Texas Intermediate (WTI) crude oil futures were at $50.14 per barrel as at 0021, up 36 cents, or 0.7 per cent from their last settlement.
On Monday oil prices edged higher on the last trading day of the year, taking a cue from firmer stock markets, but remain on track for the first yearly decline in three years amid concerns of a supply glut. Hints of progress on a possible US-China trade deal helped bolster sentiment, which has been battered by concerns over a weaker global economic outlook.