Oil Holds Gains as U.S. Crude Stockpiles Seen Extending Decline

Oil prices rise on expectation of output cut extension

Oil prices rise on expectation of output cut extension

The Organization of the Petroleum Exporting Countries and non-OPEC producers, such as Russian Federation, decided late a year ago on an output cut of 1.8 million barrels per day (bpd) to reduce global oil inventories.

Higher crude output from the United States should limit any upside to global oil prices through the end of 2018, the US government said on Tuesday. While US shale output growth and the shutdown of refineries for maintenance have slowed the impact of cuts by OPEC and its partners, the Saudi minister said he's confident the global oil market will soon rebalance and return to a "healthy state".

LONDON, May 10 (Reuters) - Oil prices rose on Wednesday after a larger-than-expected fall in US crude inventories but failed to recoup last week's losses due to concerns about rising output from the United States, Libya and Nigeria.

OPEC will decide formally whether to extend the cuts when its ministers meet in Vienna on May 25. Saudi Aramco will reduce supplies to Asian customers by about 7 million barrels in June.

NEW YORK, May 11 (Reuters) - Oil prices rose more than 1 percent on Thursday, as large drawdowns in USA inventories and growing support for continued OPEC output cuts boosted confidence that a seemingly insurmountable glut might finally diminish. For the year to date, the price of a barrel of WTI is down 18.7% and the price of Brent crude is down 16.8% per barrel.

Brent LCOc1 was 30 cents higher at $50.52 a barrel by 0715 GMT.

Crude oil prices drifted lower on Tuesday as investors continued to express concerns over slowing demand and the rise in us crude output.

Latest Forecast: Wet Spring Storm Set To Leave Colorado Tonight
The highest reported snow total was 38.5 inches (97.79 centimetres) near Ward, Colorado, the National Weather Service said. Sunday's skies are expected to be mostly sunny, with a 10 percent chance of showers and thunderstorms after noon.

Oil prices had already been trading higher on a report that Saudi Arabia was cutting exports to the key Asian market and on earlier industry data pointing to a sharp decline in weekly US inventories.

OPEC monthly report also found that world oil supply growth for the year was increased by 37,000 barrels per day with supply to now average 58.3 million barrels per day.

Russian Federation said yesterday it was discussing prolonging cuts with other producers beyond 2017, without giving a clear timeline.

A third source said an extension of up to one year could be an option.

The 13-country OPEC is curbing its output by about 1.2 million bpd from January 1 for six months, the first reduction in eight years.

The IEA now sees global oil demand growth of 1.3 million barrels a day, lower than the growth of 1.6 million seen in 2016 and the 2 million recorded in 2015.

Production rose, however, and gasoline demand over the last four weeks was 2.5 percent lower than at the same time period a year ago.

Recommended News

  • Swedish Prosecutors Drop Julian Assange Rape Investigation

    Swedish Prosecutors Drop Julian Assange Rape Investigation

    The Swedish prosecutor is dropping its investigation into an allegation of rape against Wikileaks founder Julian Assange . She was freed Wednesday, having had her sentence commuted by former President Barack Obama before he left office.
    'Help us stop Scottish nationalists', UK PM May's Conservatives ask Labour voters

    'Help us stop Scottish nationalists', UK PM May's Conservatives ask Labour voters

    Sarah Duncan, one of the suspended councillors, told The National the decision wasn't taken lightly. Fife Council - Joint leadership, with power shared equally between SNP and Labour.
    Washington unemployment rate drops to 4.6 percent

    Washington unemployment rate drops to 4.6 percent

    Johns County posted the lowest jobless figure on the First Coast at 3 percent in April, down from the March figure of 3.3 percent. This is particularly welcome, because the construction sector was among the hardest-hit during the recession.
  • Surprise tax increases in 2017 Australian budget

    Surprise tax increases in 2017 Australian budget

    The disability support pension will be denied for a disability caused exclusively by a person's substance abuse. The Treasurer believes better days are ahead, thanks to an uptick in the global economy.
    Manchester United held by Southampton in 0-0 Premier League stalemate

    Manchester United held by Southampton in 0-0 Premier League stalemate

    Goalkeeper Sergio Romero's penalty save has helped Manchester United earn a point at Southampton in a 0-0 draw. Hit play on the video at the top of the page to watch highlights from the match .
    WikiLeaks awaits UK decision on Assange's status

    WikiLeaks awaits UK decision on Assange's status

    The country's chief prosecutor applied to cancel his arrest on Friday morning, seven years after it was first granted. Last month, President Donald Trump said he would support any decision by the Justice Department to charge Assange.
  • Trump, dogged by questions at home, makes first trip abroad

    They hope he will increase support for the Saudi-led military campaign in Yemen against rebels aligned with Iran. And they see a role for US investment in efforts to shift the Saudi economy from its dependence on oil.
    US air strike hit 'military point'

    US air strike hit 'military point'

    CNN reports that the strike occurred near a base American forces use to train allied Syrian opposition fighters. The U.S. -led coalition is also supporting the force with airstrikes.
    Israel fuming at US's concern over embassy move to Jerusalem

    Israel fuming at US's concern over embassy move to Jerusalem

    On Sunday, Secretary of State Rex Tillerson raised eyebrows when he spoke of "a peace initiative between Israel and Palestine". The most recent waiver — signed by former President Barack Obama — expires on June 1.
  • John Kasich Says GOP Health Care Bill Is 'Inadequate'

    John Kasich Says GOP Health Care Bill Is 'Inadequate'

    "Thank Paul Ryan and House Republicans for keeping their word and fighting for the health care we deserve". Major medical and other groups, including the American Medical Association, opposed the House bill.
    Kimberly Guilfoyle: 'Tough to beat' working at Fox

    Kimberly Guilfoyle: 'Tough to beat' working at Fox

    The sketch opens with Sanders filling in for Spicer, who "went missing" last week following the abrupt firing of FBI Director James Comey.
    Destiny 2 Officially Revealed, Coming to Blizzard's Battle.net

    Destiny 2 Officially Revealed, Coming to Blizzard's Battle.net

    The Destiny 2 gameplay reveal showed off a slick story campaign , new exploration modes, and a whole lot more. Plus, they'll have bonuses for all clan members so any individual bonuses gets shared amongst the group.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.