Brent’s Worst Week in 13 Months As Oil Crashes on Coronavirus By Investing.com


© Reuters.

By Barani Krishnan

By Barani Krishnan

Investing.com – Oil prices tumbled a fifth straight day on Friday, pushing Brent to its worst week in 13 months, as contagion fears over the new coronavirus led to fresh risk aversion in global markets.

New York-traded , the benchmark for U.S. crude, settled down $1.15, or 2.1%, at $55.59 per barrel. Earlier in the session, WTI sunk to 53.88, its lowest since the week of Nov. 17.

London-traded , the global crude benchmark, settled down $1.35, or 2.2%, at $60.69. Brent hit a seven-week low of $60.26 earlier, almost snapping the key $60 support.

For the week, WTI lost 5%. For January so far, U.S. crude was down almost 9%, putting it on track to its biggest monthly loss since the 16.3% decline in May.

In Brent’s case, the global crude benchmark lost 6.4% on the week, its worst since December 2018. Month-to-date, Brent was off by 8% for its biggest losing month since May.

“The Coronavirus remains a major issue for the market to buy this dip and I think that there can be additional selling seen,” Scott Shelton, energy futures broker at ICAP (LON:) in Durham, N.C., said.

Likened to the Chinese-originated SARS health epidemic that caused major market disruptions in 2003, the coronavirus has killed 26 people so far, also in China. It has prompted the Chinese authorities to introduce travel restrictions across 10 cities, affecting up to 40 million people according to some reports, in the middle of the country’s most important holiday season, the Lunar New Year.

The Economist Intelligence Unit said in a report Thursday that the virus could shave between 0.5 to 1 percentage point off China’s gross domestic product growth this year against a baseline forecast of 5.9 per cent.

On the energy front, the outbreak has already downed demand for 200,000 barrels of refined oil products, estimated Claudia Galimberti of S&P Global Platts. In China’s Hubei province, where the disease was first noted, the shutdown of transportation has probably eliminated about 50,000 to 70,000 barrels a day of demand, Galimberti noted.

Separately, Goldman Sachs (NYSE:) said on Tuesday that it anticipated a 260,000-barrels-per-day negative shock to global oil demand on average, including a 170,000-bpd loss of jet fuel demand, from the 2019-nCoV. Its analysis was based on comparison with the 2003 SARS health epidemic, which shook global markets, including oil.

Switzerland-based oil risk consultancy PetroMatrix, founded by veteran trader/analyst Olivier Jakob, has termed the virus the “Black Swan event of 2020”. That puts it on par with global market disruption events like the 1997 Asian Financial Crisis, the 2000 Dot-com Crisis, the 2001 Attacks on the U.S., the 2008 Global Financial Crisis, the 2009 European Sovereign Debt Crisis, the 2014 Oil Market Crash and the 2016 Brexit.

Oil’s fortunes have nosedived after a 35% gain for WTI in 2019 and 24% for . The market appeared to be on good footing just after the New Year began as U.S.-Iran tensions initially sent crude prices rallying. But that upside was quickly lost as calm returned to the Middle East, and oil bulls have had trouble since capitalizing even on supply blockades in major producing countries Libya and Iraq.

Adding to Friday’s dark mood in oil was data from industry firm Baker Hughes showing U.S. energy firms adding to oil rigs for a second straight week. There were 676 actively-operating oil rig counts now, up three from last week, the data showed, although that was still way below the 862 that operated a year ago.



Oil Heads for Worst Week in a Year as Virus Selloff Deepens By Bloomberg



(Bloomberg) — Oil headed for its worst weekly slump in more than a year amid fears that China’s coronavirus will cripple fuel demand just as markets struggle with a fragile world economy and adequate supplies.

Futures sank as much as 2.9% in London to approach $60 a barrel for the first time since November as deaths from the coronavirus rose to 25 and China expanded travel restrictions for over 40 million people in an attempt to halt contagion. The U.S. is monitoring more than 60 people for potential infection, and lawmakers said health authorities are expected to confirm a third case.

The Asian virus has spooked traders even as the World Health Organization stopped short of declaring a global health emergency. The contagion is disrupting travel during the Lunar New Year holiday, when hundreds of millions normally fly or ride home. The selloff has accelerated as trend-following funds turned bearish, according to TD Securities.

“Contagion fears are spiking ahead of the biggest yearly migration ahead of new year,” says Daniel Ghali, a commodities strategist at TD Securities. “The fear factor is the risk of contagion, synonymous to what happened in 2003 with SARS which led to a 2% drop in Chinese economic growth.”

The fast-spreading virus is the latest challenge for a market that’s been buffeted this year by geopolitical turmoil in the Middle East and North Africa, as well as the phase-one trade deal between Beijing and Washington. Goldman Sachs Group Inc (NYSE:). said earlier this week that, if the coronavirus has an impact similar to the 2003 SARS epidemic, demand could be curbed by 260,000 barrels a day.

See also: China’s Economy Was Brightening This Month Before Virus Fear Hit

for March settlement fell $1.54 to $60.50 a barrel on the ICE (NYSE:) Futures Europe exchange as of 1:05 p.m. in New York. Futures were on track for a weekly loss of 6.7%, the biggest since Dec. 21, 2018.

West Texas Intermediate futures for March delivery slipped $1.37 to $54.22 a barrel on the New York Mercantile Exchange. Options traders are paying the most since Oct. 31 for protection against price swings, according to the CBOE/CME WTI volatility index.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Libyan central bank chief says oil blockade must be lifted By Reuters


© Reuters. Libyan central bank chief says oil blockade must be lifted

By Ahmad Ghaddar

LONDON (Reuters) – A blockade of major Libyan oil ports is damaging the economy and must be quickly resolved, the Tripoli-based central bank governor told Reuters on Friday, adding that Libya could run a budget deficit in 2020 as a result.

“Now oil represents 93-95% of total revenue and covers 70% of total spending. This is a bullet in the head, that will hurt Libya and the Libyan people,” Sadiq al-Kabir said in an interview in London. “We really hope the crisis is resolved as fast as possible because it hurts everyone.”

Libya’s internationally recognized prime minister Fayez al-Serraj has warned of catastrophe if the week-long blockade by eastern-based commander Khalifa Haftar’s forces, which has cut oil output to almost zero, is not lifted.

Previously, oil production was 1.2 million barrels a day.

Kabir said the central bank had not yet agreed on a budget for 2020 with the internationally recognized government, which had proposed a budget deficit of 17.5 billion dinars.

“We rejected that and asked them to trim spending,” he said, adding that a deficit was still possible due to the oil blockade.

Kabir has been challenged by eastern officials, which have set up their own government and central bank branch selling bonds outside the official financial system to raise funds.

The national debt, exclusively in local currency, was now 50 billion dinars, Kabir said.

Eastern officials complain they do not benefit from oil revenues, accusations rejected by Tripoli officials as the Tripoli-based central bank funds some public salaries and fuel supplies to the east.

Kabir declined to give a figure for foreign reserves but said they had risen slightly in the last two years, when oil production was more stable than in the aftermath of the 2011 revolution.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Exclusive: Guyana opening search for oil firm to trade its crude


© Reuters. Mark Bynoe, the director of Guyana’s Department of Energy, talks to Reuters in Georgetown

By Luc Cohen

GEORGETOWN (Reuters) – Guyana’s government next month plans to begin a search for an oil company or trading firm to market its share of the South American country’s crude, the director of the Department of Energy, Mark Bynoe, said in an interview.

The government is entitled to a portion of the light, sweet crude that a consortium led by Exxon Mobil Corp (N:) began producing last month after making 15 discoveries in recent years. The finds are set to transform the economy of Guyana, an impoverished country of fewer than 800,000 people.

With no refining capacity, Georgetown last year began selling its share of crude through open-market tenders, the first one awarded to Royal Dutch Shell Plc (L:) for loading the first three cargoes allocated to the government. After that, it will depend on a trading firm to sell its oil to export markets as the state builds up capacity to do so itself, Bynoe said.

“We don’t yet have the kind of back office support that is necessary,” he told Reuters on Wednesday afternoon in his office, lined with books on energy and development including historian Daniel Yergin’s “The Prize.”

“We’re moving to this simpler methodology to be able to ensure that as we build out, we are not losing value.”

Bynoe said the government next month expects to begin asking international oil companies (IOCs) and energy trading firms for proposals to operate as the agent.

But he said the selection would not necessarily be made before Guyana’s March 2 elections, given the length of the bidding and evaluation process after launching the search.

Irfaan Ali, who is challenging President David Granger, has pledged to review the terms of oil deals signed by the current administration. He has argued that the government was not transparent in choosing Shell to lift the first cargoes. Bynoe disputed that.

He said the government invited nine oil companies to present bids because crude from the Liza field was new to the market, and the government wanted to see how it performed in different refineries.

He declined to disclose the price included in Shell’s winning bid.

Latin American nations including Mexico and Ecuador have signed contracts with trading companies in recent years so the firms market a portion of their crude exports. Critics say that by doing so, the countries or their state-run firms can lose an opportunity to obtain better terms by dealing directly with refiners.

MORE TO COME

After finding more than 6 billion barrels of recoverable oil and gas resources in Guyana, Exxon and its partners Hess Corp (N:) and CNOOC Ltd (HK:) expect to produce 750,000 barrels per day (bpd) of crude by 2025.

Several other firms – including Tullow Oil (L:), Repsol SA (MC:) and Total SA (PA:) are also exploring off the coast, though none have yet made commercial finds.

Bynoe said Guyana expects to hire a company within two months to conduct new seismic surveys in the shallow continental shelf and some in deeper waters to provide hints as to where else oil may lie. He later added that after the procurement was complete, the contract could still take some time to finalize.

That would set the stage for a new licensing round for offshore acreage around the second quarter of 2021, he said.

The government is also working on a new template for production-sharing agreements (PSA) that could apply to future offshore development, but Bynoe reiterated that Guyana has no plans to renegotiate the Exxon deal.

The opposition and outside observers have criticized the Exxon agreement, which includes a 2% royalty and 50% profit share after Exxon recovers its costs, as too generous. But the company and the government argue incentives were necessary to attract investment to a risky play.

Bynoe did not specify what could change with the new PSA, parts of which would need to be approved by Congress, but said Guyana’s basin was a less risky play after Exxon’s discovery, allowing the government to “move from a position of greater knowledge.”

He added that the country expected to hire an international consulting firm to help update its petroleum legislation, which was passed in 1986, by next week at the latest.



Oil Inventories Rose 1M Last Week


© Reuters.

By Kim Khan

Investing.com – Oil prices held steady postmarket Wednesday after an industry group indicated that stockpiles in U.S. oil rose last week.

The American Petroleum Institute, reported that its measure of rose by 1.6 million for the week ended Jan. 17.

were up 0.2% in late trading.

Oil prices have been pressured by a huge build-up in oil products in the U.S. in the last two weeks, indicating that supply is continuing to get ahead of demand. A boost in oil inventories when the official government figures come out could further help the bear case.

The Energy Information Administration will report its weekly inventory numbers tomorrow at 11:00 AM ET (16:00 GMT), slightly later than usual due to the Martin Luther King Day Holiday on Monday.

Traders are looking for a decline of about 1 million barrels for , according to forecasts compiled by Investing.com.

They are also forecasting a rise of about 1 million barrels in and a build of about 3 million barrels in .

Also regarding the potential additional supply headed for the market, Fatih Birol, the head of the Paris-based International Energy Association, said he expects a 1 million-bpd crude surplus in the first half of 2020.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Oil rises as Libya declares force majeure in oilfields


LONDON (Reuters) – Oil prices rose to their highest in more than a week on Monday after two large crude production bases in Libya began shutting down amid a military blockade, risking reducing crude flows from the OPEC member to a trickle.

FILE PHOTO: Pump jacks operate at sunset in Midland, Texas, U.S., February 11, 2019. REUTERS/Nick Oxford

Brent crude LCOc1 settled up 35 cents, or 0.5%, at $65.20, having earlier touched $66 a barrel, its highest since Jan. 9.

West Texas Intermediate CLc1 last traded 12 cents, or 0.2% higher, at $58.66 a barrel, after rising to $59.73, the highest since Jan. 10.

Two major oilfields in southwest Libya began shutting down on Sunday after forces loyal to Khalifa Haftar closed a pipeline, potentially cutting national output to a fraction of its normal level, the National Oil Corporation (NOC) said.

NOC declared force majeure on crude loadings from the Sharara and El Feel oilfields, according to a document seen by Reuters.

The closure, which follows a blockade of major eastern oil ports, risked taking almost all the country’s oil output offline.

Graphic: Libya Crude Exports By Port – here   

However, the earlier rise in oil prices eased after some analysts and traders said supply disruptions in Libya will be short-lived and could be offset by other producers, limiting the impact on global markets.

“The oil market remains well supplied with ample stocks and a healthy spare capacity cushion. In other words, the bullish price impact may prove to be fleeting,” said Stephen Brennock of oil broker PVM.

Amrita Sen, chief oil analyst at Energy Aspects, added: “We expect the current scale of outages to be fairly short-lived… as there is limited upside for Haftar to slow the country’s oil revenues to a trickle.”

“The current closures are clearly a power play aimed at boosting Haftar’s leverage amid international efforts to broker peace in the country.”

Foreign powers agreed at a summit in Berlin on Sunday to shore up a shaky truce in Libya, which has been in turmoil since the fall of Muammar Gaddafi in 2011.

If Libyan exports are halted for any sustained period, storage tanks will fill within days and production will slow to 72,000 barrels per day (bpd), an NOC spokesman said. Libya has been producing around 1.2 million bpd recently.

GRAPHIC: Libyan oil production – here​​​​​​​

“A prolonged disruption from Libya would be enough to swing the global oil market from surplus to deficit” in the first quarter of 2020, said ING analyst Warren Patterson.

Meanwhile in Iraq, another major oil producer, two police officers and two protesters were killed as anti-government unrest resumed after a lull of several weeks.

However, production in southern oilfields was unaffected by the unrest, officials said.

Market activity was thin on Monday due to the Martin Luther King Jr. holiday in the United States.

Natural gas futures NGc1 last traded down 3.2% to $1.94 per million British thermal units. Prices have been under pressure from milder winter temperatures.

Reporting by Bozorgmehr Sharafedin in London, Additional reporting by Aaron Sheldrick in Tokyo and Rod Nickel in Winnipeg, Manitoba; Editing by Bernadette Baum and Daniel Wallis



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Oil Rigs Turning the Corner? By Investing.com


© Reuters.

By Kim Khan

By Kim Khan

Investing.com – Oil prices have been dealing with geopolitics for months, from the trade battle between China and the U.S. to unrest in the Middle East.

But the market is focusing more on fundamentals now.

The Baker Hughes rose to 673 from 659 last week, according to the reports released today.

The rose to 796 from 781.

That was the first time the both rig counts have risen in four weeks.

While the rises are small, it’s still important given the huge builds in fuel products over the past two week, Barani Krishnan, senior commodities analyst for Investing.com said.

“For perspective, we lost 208 rigs last year and notwithstanding this week’s rise, have dropped another net four in 2020,” Krishan said. “But if the count keeps going up by about 10 or so every week or every other week after this, then it certainly will change the flows in production.”

“What we certainly don’t need in an oversupplied market is higher rig counts, which in the simplest sense, means higher production,” he added.

The total rig count has been declining since the end of 2018. Its high was in October 2014 when it notched above 1,600.

Investing.com – Oil prices have been dealing with geopolitics for months, from the trade battle between China and the U.S. to unrest in the Middle East.

But the market is focusing more on fundamentals now.

The Baker Hughes rose to 673 from 659 last week, according to the reports released today.

The rose to 796 from 781.

That was the first time the both rig counts have risen in four weeks.

While the rises are small, it’s still important given the huge builds in fuel products over the past two week, Barani Krishnan, senior commodities analyst for Investing.com said.

“For perspective, we lost 28 rigs last week, and notwithstanding this week’s rise, have dropped another net four in 2020,” Krishan said. “But if the count keeps going up by about 10 or so every week or every other week after this, then it certainly will change the flows in production.”

“What we certainly don’t need in an oversupplied market is higher rig counts, which in the simplest sense, means higher production,” he added.

The total rig count has been declining since the end of 2018. Its high was in October 2014 when it notched above 1,600.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Oil Treads Water as Traders Wonder If China Will Meet Trump’s Demands By Investing.com


© Reuters.

By Barani Krishnan

Investing.com – Two days after the so-called landmark deal, oil traders are wondering if China will really fulfill its energy purchases under the phase one deal. Crude prices settled slightly up Friday but was unable to shrug off losses on the week amid worries the trade war could be back if Beijing falls short of its deal with President Donald Trump.

New York-traded , the benchmark for U.S. crude, settled up 2 cents at $58.54 per barrel. Despite the higher lose and Thursday’s 1.2% rebound, WTI still ended the week almost 1% down.

London-traded , the global crude benchmark, settled up 23 cents, or 0.4%, at $64.85. For the week, it rose 0.2%.

After a 36% gain for WTI and 24% for Brent in 2018, oil prices have swung this month, surging on a heightening of U.S.-Iran tensions, then slumping on a huge build in U.S. fuel stockpiles.

Wednesday’s phase one lift lifted oil bulls’ spirits again, as China committed on paper to buying at least $50 billion in energy purchases, including crude oil, over the next two years. Yet, with both sides maintaining tariffs they had imposed on each other prior to the deal, analysts have wondered how the step up in U.S. exports to China will be possible.

“It also remains to be seen how China’s existing suppliers would react to losing market share in the world’s top crude importer,” Clyde Russell, analyst at Refinitiv, said. “Would they simply roll over, or, more likely, try to protect their market share while going after U.S. customers outside of China?”

China’s biggest oil suppliers, historically, have always been from the Middle East, led by Saudi Arabia, which is the third-largest crude producer after the United States and Russia.

Further weighing on crude prices Friday was the weekly oil rig count published by industry firm Baker Hughes, which showed drillers adding 14 rigs this week to bring to 673 the total number across U.S. oil fields. A higher rig count, in the simplest sense, means higher crude production. Over the past three weeks, the rig count had fallen, extending last year’s drop of 208.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Oil Falls for Second Week as Ample Supply Offsets Trade Hopes By Bloomberg



(Bloomberg) — Oil declined for the second week as signs that supplies remain plentiful offset optimism over the signing of the U.S.-China trade agreement.

Futures in New York were little changed Friday but ended the week 0.9% lower. Refiners have turned a crude surplus into a product surplus with U.S. gasoline and distillate stocks expanding by over 40 million barrels last week. The build overshadowed Beijing’s commitment to spending $52.4 billion in additional purchases of American energy in the next two years as part the phase-one trade deal between the world’s biggest economies.

“There is a positive vibe after the trade deal, but the fact is we are so oversupplied it’s going to be difficult to get the market up past $60,” said Bob Yawger, futures director at Mizuho Securities USA LLC in New York.

Before the landmark U.S.-China accord was signed, prices reached a six-week low Wednesday after U.S. government data showed petroleum inventories in the country expanded to the highest levels since September. Inventories at the critical Cushing, Oklahoma, commercial storage hub rose for the first time in 10 weeks.

West Texas Intermediate futures for February delivery settled up 2 cents at $58.54 a barrel on the New York Mercantile Exchange.

for March settlement rose 23 cents to $64.85 on the ICE (NYSE:) Futures Europe exchange in London after climbing 1% on Thursday. That put its premium over WTI for the same month at $6.27 a barrel.

The market may have to contend with another week of inventory builds as fog on the U.S. Gulf Coast has intermittently suspended marine traffic and slowed exports, according to Andy Lipow, president of Lipow Oil Associates LLC in Houston.

The International Energy Agency noted on Thursday that global markets have a “solid base” of inventories and climbing supplies from outside the OPEC cartel, even as elevated tensions in the Middle East endanger production from Iraq and elsewhere.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Oil Prices Push Higher as Chinese Data Brighten Demand Outlook By Investing.com


© Reuters.

By Peter Nurse

Investing.com – Oil prices pushed higher Friday, helped by signs the growth slowdown in China, the world’s largest importer, may be coming to an end.

At 09:00 AM ET (14:00 GMT), futures traded 0.4% higher at $58.78 a barrel, while the international benchmark climbed 0.5% to $64.92. As such, both blends are on track to end the week only a fraction below where they started it.

Earlier Friday, China reported that its gross domestic product grew 6% in the fourth quarter, meaning economic growth slowed to 6.1% in 2019. This may have been the country’s weakest growth in nearly three decades, but traders zeroed in on the monthly data for industrial production, which grew at the fastest rate since April in December, while retail sales growth stayed at 8% and fixed asset investment ticked up from a multi-year low. All those indicators point to a bottoming out of the world’s second-largest economy.

This follows on from the signing of the trade deal between China and the U.S. earlier this week, which capped – at least for now – hostilities between the globe’s two economic powerhouses which have lasted for around 18 months and damaged global growth.

“The signing of the U.S.-China trade deal has given optimism for a revival in global manufacturing, and thus stronger oil demand growth,” said Bjarne Schieldrop, Oslo-based chief commodities analyst at SEB AB, cited in a Bloomberg report. “This is what gives the oil price some vigor.”

At the same time Schlumberger (NYSE:), the world’s largest oilfield service company, also said it sees improved demand in for its services 2020, after a second half in which its U.S. operations were hit by a sharp slowdown in U.S. drilling.

“We ended the year with 2020 oil demand growth sentiment turning positive as uncertainty reduced following the progress made toward a U.S.-China trade deal,” the company said in its earnings release.

“The recent escalation of geopolitical risk should set the floor for the oil price going forward,” it added, with a nod to the stand-off earlier this month between the U.S. and Iran.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.