🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Oil rises, buoyed by gains in industrial commodities

Published 08/10/2019, 12:25 pm
Updated 08/10/2019, 12:30 pm
© Reuters.  Oil rises, buoyed by gains in industrial commodities
HG
-
LCO
-
CL
-

* Death toll mounts in Iraq after a week of unrest

* Ecuador may cut output by 59,450 bpd on protests - ministry

* U.S. crude stockpiles may rise for 4th week - poll

By Florence Tan

SINGAPORE, Oct 8 (Reuters) - Oil prices rose on Tuesday, buoyed by overnight gains in industrial commodities, while unrest in oil-producing countries Iraq and Ecuador raised concerns of supply disruption, adding to support.

Brent crude rose 39 cents, or 0.7%, to $58.74 a barrel by 0102 GMT, while U.S. West Texas Intermediate (WTI) crude was at $53.10, up 35 cents, or 0.7%.

"Copper and aluminium traded very strongly in London and given the weakness we saw in manufacturing data last week, that suggests that there's some correction going on in industrial commodities generally," said Michael McCarthy, chief market strategist at brokerage CMC Markets in Sydney.

"We're at the lower end of the trading range, some of those moves have taken some traders by surprise. That means the risks have flipped to the upside at least in the short term."

Investors are treading cautiously before U.S.-China trade discussions that will take place in Washington on Thursday, although expectations are low for a comprehensive deal that will end a trade war between the world's top economies. in Iraq and Ecuador over poor economic conditions are threatening to disrupt output from the members of the Organization of the Petroleum Exporting Countries (OPEC).

The death toll has climbed after a week of unrest in Baghdad, capital of the second largest OPEC producer. Ecuador, protests against austerity measures could reduce the Andean producer's crude output by 59,450 barrels per day, the country's energy ministry said late on Monday. one of the smallest OPEC members, is pulling out of the bloc next year because of fiscal problems. the United States, crude inventories probably grew for a fourth straight week while distillates and gasoline stocks likely fell last week, a preliminary Reuters poll showed on Monday. EIA/S

Separately, Russia, the world's second-largest oil producer, has joined the ranks of swing producers as it could increase production fairly quickly by 0.3-0.5 million barrels per day, or 0.3-0.5% of global supply, if Saudi Arabia's production problems were to last longer than expected, Russian Energy Minister Alexander Novak told Reuters. Arabia, the world's top oil exporter, has resumed production after an attack on its facilities on Sept. 14 cut its output by half.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.