Crude oil rises in choppy trade alongside equities, dovish OPEC capped gain

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Crude oil rises in choppy trade alongside equities, dovish OPEC capped gain

On Friday, the 16th of August 2019, both US and UK crude went through a sharp rebound after facing off steep losses for two consecutive sessions, as gains of energy equities over expectation of further policy stimulus from Central Banks buoyed outlook for crude oil futures’ prices on Friday (August 16th) market, nonetheless, gains were sharply capped after OPEC had forecasted a bearish outlook for oil prices for the rest of the year.

Meanwhile, OPEC officials had also been quoted saying on Friday (August 16th) that there might be a slight surplus on 2020, which eventually evaporated investors’ optimism or what was left of it following sharp downturn of crude oil demands while factory orders and industrial profits were being jolted in a majority of G7 and G20 nations, as an aftermath of US President Donald Trump’s “America First” policy and his battles over China tariffs.

Besides, adding that the bears could soon ebb out the bulls, a director of futures in Mizuho, New York, Bob Yawger said, “OPEC killed the golden goose. We’ve had some little rallies back into the green, as market tries to follow equities higher, but the fundamentals in the report are so bearish that it caps the rallies”.

Quoting statistics, on Friday’s (August 16th) market wrap-up, UK crude ended up the session 0.7 percent higher to $58.64 per barrel after taking heavy headers of 2.1 percent on Thursday (August 15th) and 3 percent on Wednesday (August 14th), while US crude rose just a notch shy of 1 percent to curtain off the day at $54.87 per barrel after drowning 1.4 percent on Thursday (August 15th) and 3.3 percent on Wednesday (August 14th).