Oil rebounds on OPEC+ output cut, gains curbed by mixed economic data


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Oil rebounds on OPEC+ output cut, gains curbed by mixed economic data

On Friday, the 5th of July 2019, both UK and US crude oil futures rose as Iran tension had been rattling middle east including OPEC-kingpin Saudi alongside United Arab Emirates and OPEC+, an alliance of OPEC members and Russia-led coalition of other oil exporting nations had recently reached an accord to slash their oil production by 1.2 million barrel per day in order to keep crude prices in check amid a stubbornly rising US inventories, however, a bundle of mixed economic data released on Friday (July 5th) had curbed some of crude oil futures’ gains, analysts suggested, On Friday’s (July 5th) market closure, Brent crude wrapped up the day 1.47 percent higher at $64.23 per barrel, while US West Texas Intermediate crude closed 0.20 percent higher at $57.51.

In point of fact, both UK and US crude futures had winded down the week lower, as growing frets of sluggish global growth had been overshadowing impacts of OPEC+ output cut. For the week ended on Friday, July 5th, Brent Crude had posted a weekly plunge of 3.3 percent, while US West Texas Intermediate crude was jolted 1.8 percent lower in context of a slightly moderating oil inventories despite an increase in US oil drilling rig count.

Adding that fear of a global economic slowdown fever had been impacting crude demands and prices, Jim Ritterbusch of Ritterbusch and Associates wrote in a client note, “The complex is maintaining a heavy feel that was set into motion earlier this week by mounting expectations of a global economic slowdown that will be impacting oil demand”.