Oil prices rally amid falling USA gasoline supplies, rising crude stockpiles

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Rising U.S. crude stockpiles also dragged U.S. futures down by more than $1 a barrel.

Pushing in the other direction have been fears over the global economy and signs that the price rally will unleash a new torrent of American shale oil.

The long-to-short ratio reached 13 times "at the peak of the oil price euphoria last fall" and averaged 8.5 times in 2018, RBC notes.

The joint technical commission was established on January 22, 2017 under the monitoring committee created to monitor the fulfilment of the countries' commitments to reduce oil production.

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Oil markets have tightened this year as the USA imposed sanctions on oil exporters Iran and Venezuela while the producer club of the Organization of the Petroleum Exporting Countries (OPEC) has been withholding supply to prop up prices.

Oil prices rose to fresh five-month highs today as markets tightened amid OPEC-led supply cuts, United States sanctions against Iran and Venezuela, and escalating violence in Libya.

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As a result, the 11 OPEC members required to cut output achieved 155 percent compliance in March with pledged curbs, according to a Reuters calculation, up from February.

According to the EIA, Brent crude oil spot prices averaged 66 USA dollars per barrel in March, up by 2 dollars per barrel from February 2019.

The Organization of the Petroleum Exporting Countries may raise oil output from July if Venezuelan and Iranian supply drops further and prices keep rallying, because extending production cuts with Russian Federation and other allies could overtighten the market, sources familiar with the matter said. But it said that the market remains oversupplied and warned of slowing demand growth.

OPEC estimates that it needs to provide an average of 30.30 million bpd in 2019 to balance the market, a figure lowered by 160,000 bpd month-on-month partly due to weaker demand.

US crude stocks rose by 4.1 million barrels to 455.8 million barrels in the week to April 5, data from industry group the American Petroleum Institute showed on Tuesday. The former is having its own problems with a pipeline capacity shortage and a production cut that has boosted prices, and the latter has yet to reverse a fall in oil production.

In Iran, hit by U.S. sanctions, output was slight down, falling 28,000 bpd to 2.70 million bpd in March. At 456.6 million barrels, inventories are well above the five-year average.

Kingpin Saudi Arabia's production, meanwhile, fell by 324,000 bpd, according to OPEC's sources, the report said.