Crude oil may rebound in Asia on Friday after its steepest drop in a month as a mixed supply and demand picture brings caution to a near-term bullish outlook.
The International Energy Agency warned on Thursday that the oil market was tightening as demand is expected to approach 100 million barrels per day (bpd) in the next three months, but it also said risks were mounting for global economic growth next year and could lead to softer demand.
“As we move into 2019, a possible risk to our forecast lies in some key emerging economies, partly due to currency depreciations versus the U.S. dollar, raising the cost of imported energy,” the agency said. “In addition, there is a risk to growth from an escalation of trade disputes.”
ICE Brent was last quoted up 1.64 percent at US$78.43, while NYMEX West Texas Intermediate rose 0.26 percent to US$78.43 a barrel. Brent crude oil settled down 1.96 percent at US$78.18 a barrel, while WTI dropped 2.53 percent to US$68.59 a barrel.
The U.S. pointed to “admiration” for OPEC’s efforts on the oil price.
Saudi Arabia, other members of OPEC and Russia are to be admired for trying to prevent a spike in global oil prices, U.S. Energy Secretary Rick Perry said after meeting Russian Energy Minister Alexander Novak in Moscow Thursday, according to news agency reports.
“The kingdom (Saudi Arabia), the members of OPEC that are opting their production to be able to make sure that the citizenry of the world does not see a spike in oil price … are to be admired and appreciated, and Russia is one of them,” Perry told reporters.
The Baker Hughes U.S. rig count is ahead at 1300 U.S. EDT.