Oil rises on drawdown in US oil stocks, OPEC demand outlook
Reuters
MELBOURNE |
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Market gains are capped on concerns about increased production in the United States, and OPEC+ set to increase supply from May.
Oil prices rose in early trade on Wednesday, adding to overnight gains, after industry data showed U.S. oil inventories declined more than expected and OPEC raised its outlook for oil demand.
Brent crude futures rose 28 cents, or 0.4%, to $63.95 a barrel at 0057 GMT, after climbing 39 cents on Tuesday.
U.S. West Texas Intermediate (WTI) crude futures similarly climbed 28 cents, or 0.5%, to $60.46 a barrel, adding to Tuesday s rise of 48 cents.
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DUBAI/LONDON/MOSCOW (Reuters) -OPEC+ has lowered its 2021 oil demand growth forecast by 300,000 barrels per day reflecting concerns about the market’s recovery as new coronavirus lockdowns take hold, a move that could strengthen the case for a cautious output decision this week.
FILE PHOTO: The logo of the Organisation of the Petroleum Exporting Countries (OPEC) sits outside its headquarters ahead of the OPEC and NON-OPEC meeting, Austria December 6, 2019. REUTERS/Leonhard Foeger
The Joint Technical Committee, which advises the group of oil-producing nations that includes Saudi Arabia and Russia, met on Tuesday ahead of a ministerial meeting on Thursday to decide output policy.
Crude ETFs Surge Thanks to a New Report, OPEC Projections April 14, 2021
Crude oil prices and crude ETFs are surging on Wednesday, after industry data revealed that U.S. oil inventories fell more than anticipated. The Organization of the Petroleum Exporting Countries (OPEC) also lifted its projections for oil demand.
The U.S. Benchmark, West Texas Intermediate (WTI) crude futures, rocketed $2.85, or 4.72%, to $63.44 a barrel, before paring gains slightly on Wednesday.
Analysts were unsure of the future direction for crude on Tuesday, as the market has been in consolidation for nearly a month, trading between $57 and $62 a barrel before breaking out on Wednesday.
The International Energy Agency (IEA) has predicted global oil demand and supply were set to rebalance in the second half of the year and that producers may then need to pump an additional 2 million barrels per day (bpd) to meet the expected demand.