Brent crude regains $60 after Saudi's planned cuts and US-China talk

Brent crude crossed the psychologically-important $60 a barrel mark on Thursday, extending its longest rally in over 18 months supported by Saudi Arabia’s oil reduction plan and a possible resolution in the US-China trade dispute.

International benchmark Brent crude futures slipped 59 cents (- 1 percent), to $60.85 per barrel, while the US West Texas Intermediate (WTI) crude futures were down 57 cents (-1.1 percent), to $ 51.79 a barrel at 10 am Riyadh time.

The Kingdom will reduce its oil exports in January by 10 percent compared to November, Saudi Energy Minister Khalid Al-Falih said in Riyadh on Wednesday.

The world’s top crude supplier would cut its exports to 7.2 million barrels per day (mbd) in January, down from 8.0 million bpd in November, he added.

Meanwhile, the two-day US-China trade negotiations in Beijing concluded after being extended for an additional day, showing both the sides are “serious”, said a Chinese foreign ministry spokesman .

Earlier this week, the Arab Petroleum Investments Corporation (APICORP) said it expects oil prices to trade between $60 and $70 per barrel range by mid-2019, despite sharp economic slowdown.

Read: Oil prices to trade in $60-70 range by mid-2019: APICORP

After a sharp rise in the oil price to $85 per barrel in October 2018, overall sentiment became bearish with 2018 ending on a lower note with oil prices closing at around $54 a barrel, it noted.