© Reuters PHOTO PHOTO: The Sun Seen Behind a Crude Oil Pump Outlet in the Permian Basin in Loving County
MELBOURNE (Reuters) – Oil prices rose in early trading on Monday, downing half of Friday’s losses, in hopes of a stimulus deal to boost US economic recovery and a promise from Iraq to deepen supply cuts. of crude oil.
US West Texas Intermediate (WTI) Futures () rose 49 cents, or 1.2%, to $ 41.71 a barrel at 0010 GMT, while Brent (40), or 0.9%, rose 44.80. dollars per barrel.
While both rapper’s contracts fell on Friday, hurt by demand concerns, Brent ended the week with 2.5%, with WTI at 2.4%.
Hopes rose on Sunday that a standoff would end between the U.S. Democrats and the White House in a new support package for U.S. states seized by money hit by the coronavirus pandemic.
U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin both said they were ready to resume talks on an agreement to cover the rest of 2020.
At the same time, Saudi Arabian Chief of Staff Aramco (SE 🙂 Chief Executive Amin Nasser said he sees oil demand returning to Asia as economies gradually open up after easing coronavirus blockades.
“There is a slight underlining of positivity this morning that stems from comments from Aramco Saudit who are seeing a return to demand, “said AxiCorp market strategist Stephen Innes.
On the supply side, Iraq said Friday it would reduce its oil production by another 400,000 barrels a day in August and September to offset its excess production in the last three months. The move will help it comply with its share of cuts by the Organization of the Petroleum Exporting Countries and their allies, collectively called OPEC +.
The sharp cut will take Iraq’s total decline to 1.25 million bpd this month and next.
“Saudi Arabia and Iraq that establish better relations on the oil deal are excellent for the prospect of compliance,” Innes said.
Saudi and Iraqi energy ministers said in a joint statement that OPEC + efforts would improve the stability of global oil markets, accelerate its balancing and send positive signals to markets.
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