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NEW YORK (Reuters) – Oil prices have been steadily rising Monday as the market has been grappling with expectations that major producers will continue to cut global supplies and fears of slower growth in crude demand due to the US-China trade war.
Brent futures ended 4 cents to settle at $ 58.57 a barrel.
Crime futures from the US West Texas International (WTI) rose 43 cents to settle at $ 54.93 a barrel.
The Organization of the Petroleum Exporting Countries and its allies, the so-called OPEC +, has agreed to cut its crude supply by 1.2 million barrels daily since January 1st.
Khalid al-Fadhil, Kuwait's oil minister, said on Monday that his country was "completely committed" to implementing the OPEC + agreement, adding that Kuwait had reduced production more than required under the agreement.
"Kuwait's commitment to implementing the agreement to reduce production reached about 160% last July," he told KUNA.
He added: There is an exaggeration about the fears of the global economic downturn, which is putting downward pressure on prices, and that global demand for oil will recover in the second half, which will contribute to a reduction in surplus crude stocks gradually.
In a sign that Saudi Arabia, the de facto OPEC leader, plans to raise prices, state-owned Aramco is poised to launch what may be the world's largest initial public offering, analysts said.
"We will announce the IPO based on what they (the government) believe is the optimal market conditions," said Khalid Al-Dabbagh, Aramco's senior vice president for finance, strategy and development.
Saudi officials said the government plans to list Aramco in 2020-2021 in a deal that is considered to be the cornerstone of the kingdom's economic transformation, attracting foreign investment and diversifying economic activities to reduce oil dependency.
Analysts said: Tensions between the United States and Iran are also contributing to the advancement of oil prices.
But they added that further supply cuts are needed to maintain prices as pessimistic forecasts of the global economy and growth demand will grow.
Economic prospects around the world have worsened as the trade dispute between the US and China escalates, the Ifo economic institute in Germany said in its survey of 1,200 experts in more than 110 countries.
The International Energy Agency said on Friday that rising signs of economic slowdown have caused global demand to grow at the slowest rate since the 2008 financial crisis.
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