UPDATE 1-Brent oil eases from 2019 highs as markets await trade talks outcome

* Traders await U.S.-China trade talks this week

* Overall oil markets relatively tight due to OPEC supply cuts (Recasts with lower Brent prices; adds detail, comment)

By Henning Gloystein

SINGAPORE, Feb 19 (Reuters) – Brent crude oil prices eased away from 2019 highs on Tuesday on caution that economic growth may dent fuel demand this year, although supply cuts led by producer cartel OPEC still meant markets were relatively tight.

International Brent crude oil futures LCOc1 were at $66.08 per barrel at 0220 GMT, down 42 cents, or 0.6 percent from their last close, but still not far off the 2019 high of $66.83 a barrel hit in the previous session.

U.S. West Texas Intermediate (WTI) crude futures were at $55.71 per barrel. While that was up 12 cents from their last settlement, it was below the $56.33 2019 high from the previous day.

Traders said the slight downward correction was driven by concerns about the health of the global economy this year.

Bank of America (NYSE:BAC) Merrill Lynch said in a note that the Sino-American trade dispute was hurting economic growth globally.

“Addressing global trade tensions is key for improving the economic outlook,” it said in a note.

China’s vice premier and chief trade negotiator, Liu He, and U.S. Trade Representative Robert Lighthizer lead a round of trade talks this week in Washington. the economic outlook and supply and demand balances, the bank said it expects Brent prices to average between $50 and $70 per barrel, “anchored around $60.”

Despite some caution around trade, global oil markets remain relatively tight because of supply cuts led by the Middle East dominated Organization of the Petroleum Exporting Countries (OPEC), with top crude exporter Saudi Arabia cutting the most.

Saudi seaborne crude exports fell in the first half of February, with departures standing at 6.204 million barrels per day (bpd), a 1.341 million bpd decline on the previous month and 0.91 million bpd decline on the year, data intelligence firm Kpler said. providing oil markets with support are U.S. sanctions against petroleum exporters Iran and Venezuela.

Venezuela is a major crude supplier to U.S. refineries while Iran is a key exporter to major demand centres in Asia, especially China and India. (Reporting Henning Gloystein in SINGAPORE and Colin Packham in SYDNEY; Editing by Joseph Radford and Kenneth Maxwell)

Please follow and like us:

Leave a Reply

Your email address will not be published. Required fields are marked *