OPEC+ Cuts Buoy Pricing
December 31st, 2019
Crude oil and refine fuels products prices closed slightly lower yesterday, except for Brent crude oil which closed slightly higher for the February contract which expired yesterday. The market continues to look for direction as the trading volume is very low due to the Holiday week.
Traders are more concerned about tension in the Middle East after US forces conducted precision defensive strikes against 5 location in Syria and Iraq on Sunday. The air strikes were targeting an Iran backed militia who is blamed for rocket launches last Friday that killed a US defend contractor in northern Iraq.
The optimism continues to be high about the US and China Phase 1 trade deal and preliminary data showing that factory activity in China most likely expanded for the second month in a row in December.
The OPEC+ group overall production cut of 2.1 million barrels total is also offering support to prices.