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After the OPEC Monthly Report, oil erases some of its profits

Oil prices rose Friday in European trade, but some of their profits are deleted after the publication by the Organization of Petroleum Exporting Countries (OPEC) of its monthly report.

North Sea Brent crude for October delivery was worth $58.82 in London, up 1.01% from Thursday’s close.

In New York, the US barrel of WTI for delivery in September was trading at 54.89 dollars, 0.77% more than the day before.

Oil lost some of its early day earnings after OPEC slightly revised down the estimate of global demand growth in 2019 while keeping its projection unchanged for 2020.

As Mizuho analyst Robert Yager explained, the OPEC report shows that it still expects a slowdown in the global economy and expects the Sino-US trade dispute to continue to weigh on prices.

“The markets immediately began to yield” to the publication of the report, he continued.

Earlier in the day, Commerzbank analyst Eugen Weinberg pointed out that “oil prices are still at the mercy of expectations of the global economy, and so they are trapped between economic fears and hopes for sooner appeasement. Of the commercial conflict “.

On Thursday, Beijing threatened Washington with “retaliatory measures” in case the United States enforced additional punitive tariffs on “made in China” products. A spokesman for the Chinese Foreign Ministry subsequently called for a compromise.

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