Brent consolidates around $80/b after OPEC+ reinsurance

Quantum Commodity Intelligence – Crude oil futures were little changed in after-hours trading in Asia on Friday as the benchmarks consolidated gains seen in the back half of the week.

First month August 24 ICE Brent futures were trading at $79.91/pc (0725 GMT), compared with Thursday’s settlement of $79.97/b.

At the same time Jul24 NYMEX WTI trade at $75.58/bfrom Thursday’s settlement of $75.55/b.

Prices were still lower on the week, falling about 6 percent following last Sunday’s OPEC+ meeting, where the group announced an extension of cuts, although it said it would begin to withdraw some of the cuts from October.

But senior OPEC+ officials have since moved to offer assurances that the group will only continue with increases if market conditions permit and will pause the supply schedule if necessary.

“It’s a one-and-a-half-year deal, it’s got all the mechanics, some of the mechanics aren’t new, we’ve exercised it before … especially this pause or reversal issue.” Saudi Energy Minister Prince Abdulaziz bin Salman said.

Last Friday, August 24 Brent futures closed at $81.11/b, while July 24 WTI settled at $76.99/b as both benchmarks remained close to the lower limit of the four-month trading range.

Markets also received some positive interest rate news as the ECB followed through with its first rate cut of 2019 on Thursday, cutting its deposit rate to 3.75% from a record high of 4, 0%

The US will release closely watched non-farm payrolls figures later Friday, which will have a major bearing on the Fed’s own rate-cutting cycle.

Meanwhile, China’s crude imports rebounded last month on expectations of more refiners coming off the spring maintenance season, despite sluggish demand curbing output.

The latest Chinese customs data showed total crude oil imports in May at 46.97 million tonnes, or 11.06 million barrels per day, up 1.6% from the previous month, but 8 % lower than the previous year.