Oil prices dip, but expectations of tightening supply support

Friday,   14-Dec-2018   08:57 AM (IST)

Oil prices eased on Friday after rising over 2 percent the day before, but were supported by hopes the market will tighten more quickly than some had expected in the wake of supply cuts from major producers. The output curbs by the Organisation of the Petroleum Exporting Countries and some non-OPEC producers including Russia could help create a supply deficit by the second quarter of next year, the International Energy Agency said on Thursday. U.S. West Texas Intermediate (WTI) crude futures were at $52.42 per barrel at 0118 GMT, down 0.3 percent from their last settlement. Prices were edging lower during Asian trade as investors took profits after Thursday’s gains, analysts said. U.S. crude prices climbed 2.8 percent in the previous session, buoyed after data showed inventory declines in the United States. International benchmark Brent crude oil futures were at $61.06 per barrel at 0135 GMT, down 39 cents, or 0.6 percent, from their last close. As a part of the OPEC supply-cutting deal agreed last week, its de facto leader Saudi Arabia plans to reduce its own output to 10.2 million barrels per day (bpd) in January. Elsewhere, Alberta Premier Rachel Notley earlier this month said the Western Canadian province would mandate temporary oil production cuts to deal with a pipeline bottleneck that has led to a glut of crude in storage and driven down Canadian crude prices.