Crude rose today to trade above US$61 a barrel. But amid mounting global uncertainty on everything from trade and monetary policy to politics, that forecast is far from consensus.
The worst kept secret about the crude production cutbacks engineered by the Organization of the Petroleum Exporting Countries (OPEC) - that the US will continue to gain market share by pumping all out - was supported indirectly on Tuesday by the Energy Information Administration, which noted that the Americans are expected to end 2018 as the world's top producer.
Oil held its biggest loss in two weeks as uncertainty over how the OPEC+ coalition will implement its output cuts and the prospect of surging us supplies kept investors wary. Brent crude is down almost 30 percent from its October highs of more than $86.
U.S. West Texas Intermediate (WTI) crude futures were weaker, however, dropping 12 cents from their last settlement to $52.59 per barrel, weighed by surging U.S. output as the booming American oil industry is not taking part in the announced cuts.
"The surge in US supply in recent months should be a reason for caution", Bank of America Merrill Lynch said in a note on Monday.
Oil producers who agreed last week to trim production to boost prices will meet in April to review the impact and sign a long-term pact, the UAE minister said on Wednesday.
Space mission: China launched a spacecraft on dark side of the moon
The scientific instruments on its lander are still operating, making Chang'e-3 the longest working man-made probe on the moon. Chang'e-3, launched in 2013, was the first Chinese spacecraft to soft-land on and explore an extraterrestrial object.
1 dead, 310K without power after powerful winter storm slams Southeast
More than 12 inches of snow will fall Sunday in the southern and central Appalachians, the National Weather Service said. Power companies are forecasting massive storm-related power outages, and airlines have preemptively canceled flights.
ECG Functionality Comes to Apple Watch
In the meantime, Series 4 users can only stare at the ECG hardware on their Apple Watch , and hope the feature comes soon. This has been enabled today via the watchOS 5.1.2 software update so the Cupertino outfit upheld its end of the bargain.
The Opec-led group of oil producers last Friday announced a supply cut of 1.2-million barrels a day in crude oil supply from January, measured against October 2018 output levels.
Two U.S. major investment banks forecast low oil prices for next year and foresee rising U.S. oil output increasing overall supply in 2019 in spite of OPEC and its allies agreeing to curb production at the latest OPEC meeting in Vienna on December 7. Richard Robinson, manager of Ashburton Global Energy Fund, believes the current dip is "transient" and that oil will recover to between $70 and $80 in the next three months, he wrote in a note earlier this month. Import growth stood at 3 percent, the slowest since October 2016. Futures settled 2.8 percent lower at $59.97 on Monday.
Russian Federation said on Tuesday it planned to cut oil output by just 50,000 to 60,000 bpd in January, as it gradually builds to an agreed cut of 220,000 bpd.
In the previous week ending November 30, WTI increased 1.01 percent, while Brent crude lost 0.15 percent.