Brent Crude Price Reaches $64 For 1st Time Since November 21

Brent Crude Price Reaches $64 For 1st Time Since November 21

"It is supported by lower prices and the start-up of petrochemical projects in China and the U.S. Slowing economic growth will, however, limit any upside", the agency said.

Oil prices fluctuated with the equities markets as the US economy's outlook was further dimmed by other data showing an unexpected increase in the number of Americans filing claims for unemployment benefits last week.

The Organisation of the Petroleum Exporting Countries said on Tuesday it had cut output by nearly 800,000 bpd in January to 30.81 million bpd. The United Arab Emirates and Kuwait were next according to the report.

While OPEC and the EIA lowered their most recent demand expectations, the IEA maintained the same figures from January at 1.4 million barrels per day. There is a risk Venezuela production may also deteriorate, he added.

The cartel has joined forces with 10 non-member nations including Russian Federation to trim output to avoid a repeat of the 2014 crash when prices dove to below $30 a barrel - down from over $100 - due to a glut in supplies and weakening global demand.

The oil price has risen by 20 percent so far this year, yet most of that increase came in early January, before the imposition of USA sanctions on Venezuela's energy sector.




But there are indications that crude supply is beginning to decrease.

Brent for April settlement advanced 53 cents to $62.95/bbl on the London-based ICE Futures Europe exchange, after adding 1.5% on Tuesday.

Even as oil producing states in OPEC and beyond begin implementing the output cuts they agreed in December, the world's need for their crude is shrinking further, suggesting that they will need to extend the deal through the second half of the year. "In contrast, coal and natural gas generally declined as the weather outlook points towards a continuation of a milder winter, despite some cold January spells".

Despite the stunning surge in oil prices this year, Goldman Sachs says there is more to go for the critical energy commodity.

The secretary-general, of the Organisation of Petroleum Exporting Countries (OPEC), Mohammad Barkindo, has urged members of the producer group and its 10 allies "to remain firm in achieving" their output cut goals. Instead, the nationalized company now aims to become an worldwide energy giant alongside companies like Royal Dutch Shell and British Petroleum.

Crude inventories built for a fourth week in a row, rising 3.6 million barrels to 450.8 million barrels in the week to February 8.

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