Mubasher: Oil prices earlier on Friday regained some ground, after recording the steepest losses in a month in the pervious session, amid worries over supply vis-à-vis emerging market crises and escalating trade disputes could drag on demand.
At 6:34 am GMT, US Nymex crude traded at $68.76 per barrel (pb), 0.2% higher than its last close, after plunging 2.5%, as international Brent crude shed $0.3 to $78.21 pb, after losing 2% on Thursday.
By 7:57 am GMT, Nymex futures climbed 0.70% to $69.07 pb, while Brent crude futures rose 0.47% to 78.55 pb.
Nymex contract is heading for a 1.5% gain this week, while Brent is on track to record a 1.8% increase.
These prices came ahead of the Baker Hughes data pertaining drill count in the US due later in the day.
Although the oil market was seeing a tightening supply and global demand hit 100 million barrels per day (bpd) in the three months ahead, economic risks were being raised, the International Energy Agency (IEA) warned on Thursday.
“As we move into 2019, a possible risk to our forecast lies in some key emerging economies, partly due to currency depreciations versus the US dollar, raising the cost of imported energy,” the Paris-headquartered agency stated.
The IEA warned that some risk is surrounding growth from an escalation of trade feuds.
In the same vein, state-run newspaper China Daily said on Friday that China will not yield to US demands in any trade talks, after officials in Beijing welcomed an invitation from Washington for a new round of negotiations.
The US holds the upper hand in negotiation, President Donald Trump said on Twitter on Thursday, noting that “we are under no pressure to make a deal with China, they are under pressure to make a deal with us.
Fuelling supply concerns were data revealing that crude production in the US fell by 100,000 bpd to 10.9 million bpd, as the industry is still in the face of pipeline capacity constraints.