Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.

Portfolio

Loading...
Select Portfolio and Asset Combination for Display on Market Band
Select Portfolio
Select Asset Class
Show More
Download ET MARKETS APP

Get ET Markets in your own language

DOWNLOAD THE APP NOW

+91

CHOOSE LANGUAGE

ENG

  • ENG - English
  • HIN - हिन्दी
  • GUJ - ગુજરાતી
  • MAR - मराठी
  • BEN - বাংলা
  • KAN - ಕನ್ನಡ
  • ORI - ଓଡିଆ
  • TEL - తెలుగు
  • TAM - தமிழ்
Drag according to your convenience
ET NOW RADIO
ET NOW
TIMES NOW

Oil rebounds to $81, pares gain as IEA sees adequate supply

Reuters|
Updated: Oct 12, 2018, 02.49 PM IST
0Comments
Oil-1---Reuters
OPEC sees the oil market as well supplied and is wary of creating a glut next year
LONDON: Oil rose to $81 a barrel on Friday, rebounding after two days of declines, though prices pared gains after another closely watched forecaster deemed supply adequate and the outlook for demand weakening.

Crude was still heading for its first weekly drop in five weeks, pressured by a big rise in US inventories and fading concerns that looming US sanctions on Iran will cut supplies significantly.

A monthly report by the International Energy Agency (IEA) said the oil market looked "adequately supplied for now" after a big rise in production and trimmed its forecasts for world oil demand growth this year and next.

"This is due to a weaker economic outlook, trade concerns, higher oil prices and a revision to Chinese data," said the IEA, which advises industrialised countries on energy policy.

International benchmark Brent crude rose 76 cents to $81.02 a barrel by 0830 GMT, having dropped by 3.4 per cent on Thursday. US crude added 71 cents to $71.68.

Brent is still on course for a 3.7 per cent decline this week, the biggest weekly fall in about four months.

Oil found support from figures showing that China's daily crude imports in September hit their highest since May and from a rebound in equities. A drop in equities amid wider risk-off investor sentiment had pressured crude on Thursday.

Still, the IEA report is the latest government assessment to predict weaker demand ahead and conclude that supply is adequate. The Organization of the Petroleum Exporting Countries (OPEC) made a similar move on Thursday.

"The bearish alarm bells are ringing for next year's oil balance as market players brace for the return of a supply surplus," said Stephen Brennock of oil broker PVM.

A drop in US oil production also lent prices some support. In the US Gulf of Mexico, companies cut output by 40 per cent on Thursday because of Hurricane Michael, even as some operators began returning crews to offshore platforms.

Michael made landfall in Florida on Wednesday as the third most powerful hurricane to strike the US mainland, though it has since weakened to a tropical storm.
0Comments
Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Loading
Please wait...