Oil prices seek balance with supply cuts, low demand

By Ovunc Kutlu

ANKARA (AA) - Crude oil prices began Friday on a higher note, as prices try to reach a balance between low global demand and supply cuts.

International benchmark Brent crude was trading at $67.38 per barrel at 0638 GMT with a 0.3 percent gain after closing Thursday at $67.19 a barrel.

American benchmark West Texas Intermediate was at $58.77 a barrel at the same time, posting a 0.3 percent increase, after ending the previous session at $58.56 per barrel.

The crude oil pendulum is swinging as on one side lower supply from major oil producers is pushing prices up while on other side, concerns over a slowdown in global oil demand this year are causing a downward trajectory.

While the U.S. sanctions on Iran and Venezuela have hindered their crude exports, OPEC and Russia's impeded production for the first half of this year is set to lower overall supply on the global market and push prices higher.

Furthermore, the record high U.S. crude oil production continues to threaten the market share of OPEC and Russia.

On the demand side, weak economic growth expectations for China and the European Union signal that global oil consumption could remain low in 2019, putting a downward pressure on crude prices.