Oil extends gain near $70 as Saudis vow not to oversupply market | Fin24
 
  • Money Flows

    About 3 000 super-rich have left SA in the past 10 years, according to a new report.

  • Nelson Mandela

    Madiba would have been alarmed at the polarisation and hate speech in SA, says Derek Hanekom.

  • Fin24’s newsletter

    Sign up to receive Fin24's top news in your inbox every morning.

Loading...

Oil extends gain near $70 as Saudis vow not to oversupply market

Jul 21 2018 09:38
Heesu Lee, Bloomberg

Oil extended gains near $70 a barrel after Saudi Arabia signaled it won’t export oil beyond its customers’ needs, dispelling fears that it may flood the market.

Futures in New York rose 0.9% after gaining 2.1% in the previous three sessions. OPEC’s de facto leader Saudi Arabia, which has been under pressure from US President Donald Trump to pump more and ease prices, said exports this month will be “roughly equal” to June, and they will drop by 100 000 barrels a day in August.

Crude has retreated by almost 6% this month as the prospect of a tit-for-tat trade war between the US and China rattled global financial markets.

The US oil benchmark closed above its 50-day moving average on Thursday after slipping below that level earlier this week, while worries over potential supply losses in Venezuela and Iran as well as sporadic disruptions in Libya linger.

“While Saudi Arabia is under pressure from Trump to keep oil prices low, it probably won’t like them to be too low at the same time,” said Hong Sungki, a commodities trader at NH Investment & Securities Co in Seoul. “If it replaces the lost volumes from Iran and Venezuela, overall supplies will eventually be balanced.”

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

saudi arabia  |  trade wars  |  oil
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Do you think government can solve the Eskom crisis?

Previous results · Suggest a vote

Loading...