Oil prices rally amid mega energy deal

0 Comment(s)Print E-mail Xinhua, April 13, 2019
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NEW YORK, April 12 (Xinhua) -- Oil prices rose on Friday as market sentiment was boosted by a huge deal in the energy industry amid continued signs of tightening global supplies.

The West Texas Intermediate for May delivery gained 0.31 U.S. dollar to settle at 63.89 dollars a barrel on the New York Mercantile Exchange, while Brent crude for June delivery climbed 0.72 dollar to close at 71.55 dollars a barrel on the London ICE Futures Exchange.

U.S. oil giant Chevron Corporation said on Friday it will buy Anadarko Petroleum Corporation in a stock and cash transaction valued at 33 billion U.S. dollars to bolster its position in shale and the liquid natural gas market.

Oil prices also gained support from continued signs of supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.

Production by OPEC countries in March was 2.2 million barrels per day (b/d) lower than in November and now there is uncertainty concerning Libya, said a report released by the International Energy Agency on Thursday.

Meanwhile, production by non-OPEC producers in the first quarter of 2019 fell 0.7 million b/d as compared with the fourth quarter in 2018, the report revealed.

In December, OPEC and other major oil producers, including Russia, pledged to cut production by 1.2 million barrels per day in order to prop up prices, effective from this January.

OPEC and its allies are expected meet in June to decide whether to continue withholding supply. Enditem

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