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Oil rises for a second day as Saudi Arabia pushes supply cut

Published 12/03/2019, 10:22 AM
Updated 12/03/2019, 10:24 AM
© Reuters. Oil rises for a second day as Saudi Arabia pushes supply cut
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TOKYO, Dec 3 (Reuters) - Oil prices rose for a second day on
Tuesday as Saudi Arabia, the de facto OPEC leader and the
world's biggest oil exporter, is pushing producers to deepen a
supply cut agreement when suppliers meet this week, potentially
lowering supply in 2020.
Brent futures LCOv1 rose 19 cents, or 0.3%, to $61.11 a
barrel by 0218 GMT, after gaining 0.7% on Monday.
U.S. West Texas Intermediate crude CLc1 was up by 21
cents, or 0.4%, at $56.17 a barrel. The contract rose 1.4% on
Monday.
The Organization of the Petroleum Exporting Countries (OPEC)
and its allies, a group known as OPEC+, are discussing a plan to
increase its existing 1.2 million barrels per day (bpd) supply
cut by 400,000 bpd and extend the pact until June, two sources
familiar with the matter said.
Saudi Arabia is pushing the plan to deliver a positive
surprise to the market before the listing of state-owned Saudi
Aramco, the sources said. OPEC ministers will meet in Vienna on Thursday and the wider
OPEC+ group will gather on Friday.
Concerns about the inability of the United States and China,
the world's two biggest oil users, to come to a preliminary
agreement to resolve their 17-month trade dispute also weighed
on oil prices, along with discouraging U.S. economic data.
A senior adviser to President Donald Trump said on Monday a
U.S.-China trade deal was still possible before the end of the
year, adding that the first phase of the agreement was being put
to paper, but the talks have been dragging on for weeks now.
U.S. factory activity contracted in November, while Trump's
unexpected announcement of plans to reimpose tariffs on steel
and aluminium from Argentina and Brazil is also a dampener on
prices.

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