Oil prices rise but on track for weekly loss

1 November 2019 (Last Updated November 1st, 2019 12:09)

Oil prices have slightly edged higher on China’s factory data but are on track for a weekly loss.

Oil prices have slightly edged higher on China’s factory data but are on track for a weekly loss.

Brent crude futures were down $0.27 at $59.89 a barrel, while US West Texas Intermediate (WTI) crude futures were down $0.32 at $54.50 per barrel, reported Reuters.

Reuters said that concerns on global economy and oil demand are affecting the market, while a 16-month trade dispute between the US and China continues.

National Australia Bank commodity research head Lachlan Shaw told Reuters: “There’s renewed doubts about a US-China trade deal… and at the same time we’ve had inventory lifts quite a lot more than expected at the crude level out of the US this week.”

US crude stock rose by 5.7 thousand barrels (Mbbls) in the week ended on 25 October, compared to analyst expectations for a gain of 494 Mbbls.

A Reuters survey found that output from OPEC recovered in October from an eight-year low, with production ramp-up and oil recovery in Saudi Arabia following drone attacks on the nation’s oil in September.

According to government data, US crude production surged nearly 600,000 barrels per day in August to a record of 12.4m, buoyed by a 30% gain in the output from Gulf of Mexico.