Oil Prices fall after 9 Day Winning Streak


On Friday, the 11th of January, 2019, oil crash-dived about 2 percent amid escalated worries of a global economic slowdown, however, the oil futures seemed well-supported to secure a weekly gain followed by a weeklong rally.

China plans to set a lower economic growth target of 6-6.5 percent in 2019 compared with last year's target of "around" 6.5 percent, policy sources told Reuters, as Beijing gears up to cope with higher us tariffs and weakening domestic demand.

The Stock Exchange of Thailand was down slightly in Thursday afternoon trading as Asian markets delivered mixed results Thursday following the end of three days of trade talks between the USA and Chinese without significant breakthroughs.

The U.S. Trade Representative's office said in a statement after the three-day talks that officials from U.S. and China discussed "ways to achieve fairness, reciprocity and balance in trade relations".

MSCI's all-country index .MIWD00000PUS climbed 1.03 percent for a fourth day of gains.

Offsetting the adverse political impact, oil rigs in the United States declined by four, the second weekly fall, as caution grew among oil producers in their drilling plans for 2019, according to USA energy services firm Baker Hughes on Friday.

POWELL SPEECH: Federal Reserve Chairman Jerome Powell said Thursday that the USA central bank has the "ability to be patient" with its plans to gradually raise interest rates.

On Wednesday, a clutch of Fed officials said they would be cautious about any further increases in interest rates so the central bank could assess growing risks to an otherwise-solid US economic outlook. Minutes of the meeting, which were released a day earlier, showed the officials believed that the central bank could afford to be "patient" with rate hikes, given volatile stock markets, trade tensions and shaky global growth.

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Brent has gained more than 20 percent since hitting an 18-month low in late December.

ANALYST'S TAKE: "The sentiment pendulum has swung from USA recession fears to optimism for a dovish Fed and positive US-China trade talks".

However, U.S. crude was on track for a second consecutive week of gains and its largest weekly percentage increase in more than two years.

ENERGY: Oil prices fell back after hitting their highest levels in nearly a month.

International Brent crude futures LCOc1 were at $60.55 per barrel at 1440 GMT, down $1.13, or 1.83 percent.

Improved risk appetite sent U.S. Treasury yields to their highest this year, ahead of the sale of new 10-year supply by the Treasury Department. Producer prices inched up 0.9 percent from a year ago, far from November's 2.7 percent rise. Hong Kong's Hang Seng recovered to edge 0.1 percent higher, to 26,492.61, while the Shanghai Composite index was flat at 2,545.37. This article is strictly for informational purposes only.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.