On Friday, the 11th of January, 2019, oil crash-dived about 2 percent amid escalated worries of a global economic slowdown, however, the oil futures seemed well-supported to secure a weekly gain followed by a weeklong rally.
After seven days of straight gains, the US crude drowned 1.7 percent to $51.68 per barrel and the Brent Crude fell by 1.9 percent to $60.53 a barrel, on Friday, GMT. 19.00. Despite today’s heavy plunge, both of these benchmarks were well on-route to set their second week of gains, while US crude and Brent crude post weekly gains of 8 and 6 percent respectively so far.
The crude market is still well-supported by the OPEC kingpin, Saudi-led output cut of 4,20,000 barrels per day. Apart from that, a high-level trade talk between US and China later on January, had been cheering the market.
None the less, the record surge in US inventories had also played a pivotal role in today’s crude price plunge, as Consultancy JBC Energy had been quoted saying that the US crude production rose above a record 12 million barrel per day this month.
Being cautiously optimistic on investors’ confidence, the Vice President of market research at the Tradition Energy in Stamford, Connecticut, Gene McGillian said, “Some of the strength that we’ve gotten from that seems to be coming out of the market. ”