Oil Ticks Higher Despite Global Economic Worries

Oil prices edged higher for the first time in three sessions on Wednesday, although concerns over the outlook for the global economy capped gains.

US West Texas Intermediate crude futures were at $53.74 per barrel, up 8 cents from their last settlement. They closed down 1.7% on Tuesday, CNBC reported.

International Brent crude oil futures were at $62.05 per barrel, up 7 cents, after closing down 0.8% in the previous session.

Global economic worries have weighed on market sentiment in recent days, offsetting support from signs that global supplies are tightening.

With a nervous market, traders are focused on the US State of the Union address by President Donald Trump.

“Anything out of the State of the Union that hints at the US-China deal not working out, or more anti-trade rhetoric would be a negative for energy prices as demand would be lower if global growth keeps being downgraded,” said Alfonso Esparza senior market analyst, OANDA.

US sanctions on Venezuela have been viewed as supportive for prices by helping tighten global supplies. A flotilla loaded with Venezuelan oil has formed in the Gulf of Mexico, some holding cargoes bought ahead of the latest US sanctions on Venezuela and others whose buyers are weighing who to pay.

source: Financial Tribune