Brent prices remain well below their October 2018 peak of US$86/bbl, but a rebound from a recent low of near US$50 occurred in January 2019. Support above US$60/bbl in recent weeks has come from a new round of output restraint from OPEC and its allies, as well as recent US sanctions against crisis-stricken Venezuela. Efforts to prevent a supply overhang and possible disruptions to shipments and transactions of the fossil fuel should provide scope for further increase. The outlook, though, is complicated by risks to global demand and US-Sino trade tensions, which have hampered investor confidence. In particular, a GDP slowdown in China, which expanded 6.4% (y-o-y) in Q4 2018, and a slump in industrial production in much of Europe, has raised questions about energy consumption.
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