Balanced oil market by end of year: Kuwait

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LONDON

Oil rose to about $69 a barrel on Monday, supported by Middle East tensions and OPEC-led supply cuts, though concern over the US-China trade dispute and global economy capped gains. Supply cuts both voluntary by the Organisation of the Petroleum Exporting Countries (OPEC) and allies, plus those resulting from US sanctions have helped Brent crude, the global benchmark, rise by 29% this year. Brent was up $0.48 at $69.17 a barrel by 1143 GMT, having fallen by about 4.5% last week. US West Texas Intermediate crude rose $0.03 to $58.66. The main factor preventing the market from going higher on the geopolitical news is really the concern about the global economy, said Petromatrix oil analyst Olivier Jakob. Both crude contracts registered their biggest weekly price declines of the year last week. Public holidays in the United States and Britain on Monday limited participation, keeping volumes low.

Tension between the United States and Iran, with Washington’s announcement on Friday that it would deploy more troops to the Middle East, is supporting the market but some analysts said its impact could be limited. This move further increases tensions in the region, but with the US and UK markets closed today and most of the geopolitical tension likely already priced in to the market, effects on crude prices may remain subdued, JBC Energy said in a report. — VoM

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