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Jakarta Post

Oil claws back up supported on declining supply

  • Mriganka Jaipuriyar
    Mriganka Jaipuriyar

    Associate editorial director, Asia & Middle East Oil News & Analysis, S&P Global Platts

Jakarta   /   Thu, January 24, 2019   /  01:04 pm
Oil claws back up supported on declining supply Oil and gas tanks fill a port’s storage zone in Zhuhai, China. Beijing has been drumming the message that it has plenty of room to deploy measures to spur economic growth to counter the effects of a trade war with the United States. (Reuters/Aly Song)

After a tumultuous year- end, oil prices have been clawing their way up since the start of 2019 and the trend is expected to continue, supported by declining supply and a modest rebound in market sentiment. 

Front-month ICE Brent crude futures hit both the highest and lowest levels for 2018 during the fourth quarter last year. The European crude benchmark had surged to a near 4-year high of US$86.74 per barrel on Oct. 3, before crashing more than 40 percent to briefly trade below the $50 mark on Dec. 26.  

The Middle Eastern crude benchmark Dubai, a key price tracked by Asian importers, also posted a sharp decline during Q4 last year. The S&P Global Platts second-month Dubai swap tumbled 41 percent from the 2018 peak of $82.85 per barrel assessed on Oct. 4 to $49.04 on Dec. 26.

But prices have since rebounded, largely driven by p...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.