Oil prices on Thursday hovered around its 2019 high amid high uncertainty due to US- China trade negotiations and Continued sanctions by the US on Organization of the Petroleum Exporting Countries (OPEC) countries like Iran and Venezuela.
The stoke in the crude oil prices is also due to the supply cut by the Nigeria. OPEC member Nigeria signalled on Wednesday that it would limit output after its production climbed in January. Brent crude slipped 64 cents to $65.86 barrels a day by 1435 GMT, having reached a 2019 high of $66.83 on Monday.
The international benchmark rose as high as $67.38 on Wednesday, surpassing Monday’s high of $66.83 for the year.
“The market is slowly regaining its bullish footing, subject to the perception of economic risks tied to US-China trade talks,” said Harry Tchilinguirian, global head of commodity markets strategy at BNP Paribas.
OPEC leader Saudi Arabia agreed last year, along with producer allies such as Russia, to cut output by 1.2 million barrels per day (bpd) to prevent a supply overhang from growing.
However, industry experts say global economic slowdown has hindered the oil prices from surging more. Also the other factor which is keeping price in control is the increased supply by US, which hiked supply more than 2 million bpd last year to a record 11.9 million bpd.