Crude Oil Price Rebounds As Markets Still Concern On Trade Disputes
May 24, 2019 | Friday
On Friday, crude oil prices gained more than 1 percent while surrounded by Middle East tensions and OPEC supply cuts. However still, the market doesn't completely recover its losses this week with economic slowdown anxiety and sore inventories - the market's sheerest drops since early 2019.
Meanwhile, international benchmark - Brent crude futures were up by 74 cents or 1.1 percent from its last close. It amounted $68.50 per barrel during 02:31 GMT.
The United States West Texas Intermediate (WTI) crude also up by 63 cents or 1.1 percent. It then amounted $58.54 per barrel.
According to ANZ bank, the number of supply risk stayed while the tension continues in Iran and the United States. That of which is likely to "turn disruptive."
Moreover, the Organization of the Petroleum Exporting Countries (OPEC) and its supply cuts since the start of 2019 still intends to tighten the market and drive the prices up. According to ANZ, Iran and Venezuela's sanctions within the oil industry supports further deduction on crude exports.
However, on Friday, the prices came firm and unable to make up a bigger slump coming from the drops earlier this week. That brings the crude oil futures on the path towards its biggest weekly losses in 2019.
Chief market strategist at CMC Markets Australia, Michael McCarthy said in a note: "Increasing (oil) inventories and slumping U.S. manufacturing activity exacerbated trade related concerns about global demand." That pulls WTI under $60 per barrel and Brent crude below $70 per barrel.
The oversupply spread ahead North America. The Asian refinery margins also fell to its lowest seasonal level this week, struggling to keep up with the oversupply from fuels.
On Friday, the ANZ bank also said in China, stockpiles of gasoline at seaports are rising towards its multi-year high. That shrinks the margins on the refiners. That leads to softer oil demand coming from China.
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