Viernes, 19 Abril, 2019

Expect Crude oil prices to trade positive: Sushil Finance

Manuel Armenta | 20 Abril, 2017, 05:59

"By the end of April we will reach 300,000 barrels per day cuts", said the Russian Energy Minister Alexander Novak.

"U.S. oil production rose to the highest level in over a year, leaving oil prices weaker on the day after the U.S. EIA released its data".

However, OPEC expressed concerns over increasing supplies of the non-member OPEC countries in 2017, amidst budget challenges a lot of them face.

"The forecast for non-OPEC supply in 2017 will also depend on how much U.S. tight oil production improves in the coming months", OPEC said in its April Bulletin.

U.S. West Texas Intermediate (WTI) rose by 11 cents to US$53.19 a barrel by 12:50 p.m. ET, after touching a five-week high of US$53.37. USA crude was up 84 cents to settle at US$53.08.

Oil advanced for an eighth day in London, the longest gain since 2012, on speculation Saudi Arabia will support an extension to OPEC-led output cuts just as stockpiles show signs of shrinking.

IEA says oil markets are arguably "very close to balance".

OPEC members pumped a combined 31.93 million barrels of crude daily last month, down 153,000 bpd from February, the group said in the latest edition of its Monthly Oil Market Report.

American drivers jumping into their cars this summer for long-distance journeys are expected to buoy global oil demand, according to the Organisation of Petroleum Exporting Countries.

Crude oil edged back from a five-week high on April 11, as rising US shale oil production weighed against support from tensions in the Middle East and production cuts in OPEC and other states.

Inventories at the Cushing, Oklahoma, site fell by 358,000 barrels, following last week's 1.34-million-barrel build.

Fundamentally, markets concern whether OPEC will extend the output cut agreement in the May meeting.

Crude oil for May delivery CLK7, -0.08% traded 1 cent higher at $53.12 a barrel, after having traded as low as $52.82 earlier in the day.

Traders focused on preliminary U.S. production estimates included in the weekly report from the U.S. Energy Information Administration (EIA) that suggest domestic output is still climbing.

Later on Thursday, Baker Hughes data on active USA rigs will be released; the number of rigs has increased for 12 consecutive weeks headed into this week's data.