Everyone Needs to Talk Nice

By: Greg Gill / January 7, 2019

Oil prices rose by more than 1 percent on Monday, lifted by optimism that talks could soon resolve the trade war between the United States and China, while supply cuts by major producers also supported the market.

Brent Crude futures were at $57.75 per barrel, up 69 cents from their last close. WTI crude oil futures were at $48.67 per barrel, up 71 cents.

The United States and Beijing have been locked in an escalating trade spat since early 2018 raising import tariffs on each other's goods. The dispute has weighed on economic growth. Companies like Goldman Sachs and JP Morgan are being challenged with predicting futures in both crude prices, as well as economic growth due to “strongest macro headwinds since 2015.”GettyImages-803709916

Last week a survey found OPEC oil supply fell in December by 460,000 barrels per day (bpd), to $32.68 million bpd, a Reuter’s survey found last week, led by cuts from top exporter Saudi Arabia.

U.S. crude oil production stayed at a record 11.7 million   the last week of 2018, according to weekly data by the Energy Information Administration (EIA) released on Friday. That makes the United States the world's biggest oil producer ahead of Russia and Saudi Arabia.

It will be interesting to see how talks continue to unfold, and if the U.S. can keep up this frantic production of oil. Time will tell.



Categories: US crude, Trade, China, crude

Greg Gill

Written by

Greg Gill

I’m passionate about fully understanding my customers’ fuel operations and the fuel markets in which they operate. I want them to view me as their fuel expert. To develop strong, trusting partnerships with customers, I have to provide them with meaningful and timely information to ease the challenges of making smart fuel decisions, allowing them to focus on their core business.

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