Oil strengthens on prospect of OPEC+ maintaining supply cuts, drop in U.S. inventories

Oil falls again amid concerns over demand rebound

By Administrator_India

Capital Sands

Oil prices rose for a second straight session on Thursday, as the possibility that OPEC+ producers might decide against increasing output at a key meeting later in the day lent support alongside a drop in U.S. fuel inventories.

Brent crude futures added 27 cents, or 0.4%, to $64.34 a barrel, as of 0308 GMT, after climbing more than 2% on Wednesday. U.S. West Texas Intermediate (WTI) crude futures gained 19 cents, or 0.3% to $61.47 a barrel.

“Prices hinge on Russia’s and Saudi Arabia’s preference to add more crude oil production,” said Stephen Innes, global market strategist at Axi. “Perhaps more interesting is the lack of U.S. shale response to the higher crude oil prices, which is favourable for higher prices.”

The Organization of the Petroleum Exporting Countries (OPEC) and allies, together called OPEC+, are considering rolling over production cuts into April instead of raising output, as a recovery in oil demand remains fragile due to the coronavirus crisis, three OPEC+ sources told Reuters.

The market had been expecting OPEC+ to ease production cuts by around 500,000 barrels per day (bpd) from April.

“OPEC+ is currently meeting to discuss its current supply agreement. This raised the spectre of a rollover in supply cuts, which also buoyed the market,” ANZ said in a report

U.S. crude oil stockpiles surged by a record of more than 21 million barrels last week as refining plunged to an all-time low due to the Texas freeze that knocked out power for millions.

With refiners unable to process crude, gasoline and distillate inventories also dropped dramatically, especially in the Gulf Coast region where their declines set records, the U.S. Energy Information Administration said on Wednesday.

Related Posts
Oil Up as Investors Await Thursday’s OPEC+ Production Decision
Oil Up as Investors Await Thursday’s OPEC+ Production Decision

By Administrator_India Capital Sands Oil was up Wednesday morning in Asia, over wide expectations that the Organization of the Petroleum Read more

Brent oil rises on weaker dollar though IEA cuts demand outlook

By Administrator_India Capital Sands Brent Oil rose past $55 a barrel — with some assistance from a weaker dollar — Read more

Oil prices fall amid worries over new coronavirus strain

BY Administrator_India Capital Sands Oil prices slid in early trade on Monday as a fast-spreading new coronavirus strain in the Read more

OPEC+ oil output boost to leave market in precarious balance, IEA says

By Administrator_ India Capital Sands The outlook for oil “remains fragile” as the pandemic depresses demand, and OPEC’s plans to increase supply Read more

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x