Price history of oil inclines while supply fears drive gains

On Monday, oil prices are inclined to place additional gain in the first quarter. Furthermore, drive major benchmarks to report its biggest increase in a decade. However, fears on supply surpass the concern on the slowing global economy.

Meanwhile, during 0214 GMT, Brent crude on June delivery went up by 43 cents at about 0.6 percent amounting to $68.01 per barrel. Therefore brings the first quarter up by 27 percent in total.

United States WTI

Elsewhere, the United States West Texas Intermediate (WTI) foresight went up by 32 cents at about 0.5 percent amounting to $69.46 per barrel. That occurs upon posting its 32 percent incline within January-March timeframe.

Meanwhile, the United States sanctions against Venezuela and Iran together with the supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) supports prices. That done to overlaps the existing concerns on global growth and the US-China trade conflict.

United States Oil Producers

Phil Ziebell, a senior economist at National Australia Bank in Sydney, comments concerning another possible scenario. That despite supply cuts, future gains are limit by a possible softness within the global economy. That includes the capability of United States oil production. Boosting production as prices increase. Ziebell said, “It’s tough to see a really big rally from here,” addressing the matter.

But still, on Friday, Reuters poll reveals analysts turn optimist on the prices of crude oil this year. In addition, the United States oil production steadied. Last week, the U.S. government revealed domestic output in the top crude producer slipped lower than the 11.9 million barrels per day recorded during January.

Elsewhere, last week, U.S. energy companies lessen the number of oil rigs operation, bringing them at the lowest level in about a year. The United States under-secretary of the Treasury for terrorism and Financial Intelligence, Sigal Mandelker on Friday spoke to the Singapore reporters. Mendelket notes that the U.S. government is to place extended “intense pressure” against Iran.