Crude oil prices fell low on Monday after gains during the previous session. There were expectations of shrinking supply and signs that China-U.S. trade tensions would ease. That could help oil price rise up.
The International Brent crude oil futures on Monday was down by 20 cents, or 0.32 percent at 0339 GMT to $62.54 a barrel, after closing up at 3.14 percent. U.S. West Texas Intermediate (WTI) futures were at $55.13 per barrel, down 13 cents, or 0.24 percent. WTI settled 2.73 percent higher in the last session at its highest close since Nov. 19.
Organization of the Petroleum Exporting Countries (OPEC) made output declines as they tried to curb a supply overhang of the U.S. oil rig counts and sanctions on Venezuelan oil sales.
It was reported that while the Venezuelan output rose last month, fresh U.S. sanctions on the country could see 0.5 to 1 percent of global supply curtailed.
The OPEC oil supply saw in a sharp decline in January despite production declines in Russia, according to a survey by Reuters. Russia has said that it would reduce oil output by 230,000 bpd from October.
U.S. energy firms have cut their oil rigs operating to their lowest in eight months. Some drillers plans on spending less on new wells this year.Nissan has also canceled plans to build new X-Trail model in Britain. Since the oil prices have dropped, supply needs to be kept in check.
The China-U.S trade relations have helped ease concerns over slowing economic growth. ANZ has reported that while a deal hasn’t been signed, progress has been made.
Last week, U.S. President Donald Trump said he would meet with Chinese President Xi Jinping in the coming weeks to try to officiate a trade deal with Beijing but it is still unsure whether the deal would be sealed.
