Forex Marketz Daily Forex News – Fully Markets Update
Crude oil futures rose during Asian trade hours. Oil was supported by news out of OPEC that Saudi Arabia had cut production. This was done to avoid a looming oversupply.
The international benchmark, front end Brent crude as of 1:20 am GMT, was trading at $72.87 per barrel. This is up 26 cents, or 0.4 percent, from yesterday’s close.
U.S. West Texas Intermediate (WTI) crude futures also gained. This contract was up 32 cents, or 0.5 percent, to trade at $67.52 per barrel.
In July, Saudi Arabia, the leader of OPEC, had the Organization of the Petroleum Exporting Countries (OPEC) to cut production by 200,000 barrels per day. They would now produce to 10.288 million barrels per day.
Saudi Arabia to Reduce Crude Oil Production
On Monday, the Organization of the Petroleum Exporting Countries published a report that uses data from other sources. They confirmed that Saudi Arabia will cut production. This supported global oil contracts and the black gold gained ground.
This move from the Middle Eastern nation comes despite an anticipated global slowdown in oil demand.
The OPEC report said it expected global demand to grow by 1.43 million barrels per day in 2019. This is down from 1.64 million barrels per day in 2018.
OPEC said that the slowdown would come on the back of potentially slower global economic growth. This could be thanks to a simmering trade spat between the United States and China. There are also problems in emerging markets.
