Free Commodity Tips: Crude oil prices rise on OPEC output cuts

Rudra Investment Free Commodity Tips Expert says OPEC, along with some other producers together with Russia, cut oil output rudely in December before a new accord to limit supply took result on January.

Oil prices rose on Friday after a report from the association of the Petroleum Exporting Countries showed its production fell sharply last month, easing doubts about prolonged oversupply.  U.S. West Texas middle (WTI) crude futures were at $52.57 per barrel at 0253 GMT, up 50 cents, or 1 percent, from their last settlement.

International Brent crude oil futures were up 45 cents, or 0.7 percent, at $61.63 per barrel.

In Free Commodity Tips Monthly Report that its oil output fell by 751,000 barrels per day (bpd) in December to 31.58 million bpd, the biggest month-on-month drop in almost two years. But tempering that support for prices, OPEC also cut its predict for average daily demand for its crude in 2019 to 30.83 million barrels, down 910,000 bpd from the 2018 average.

Undermining OPEC’s efforts to tighten oil markets has been a surge in crude output from the United States, which amplified by more than 2 million bpd in the last year to an unprecedented 11.9 million bpd.