Oil surges with U.S. demand bump driving global rebound optimism
Andres Guerra Luz, Bloomberg News
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Oil advanced to the highest in over a month as a combination of declining U.S. petroleum product supplies and signs of stronger demand buttressed expectations for a revival in global consumption.
Futures in New York jumped 1.5 per cent on Wednesday, posting the largest back-to-back daily gains in two weeks. A U.S. government report showed total petroleum stockpiles dropped last week, led by the biggest weekly decrease in distillate inventories since early March. A gauge of demand for overall petroleum products rose to the highest in more than two months. Meanwhile, Goldman Sachs Group Inc. is forecasting an unprecedented jump in global oil demand as vaccination rates rise.
Oil advanced to the highest in over a month.
(Bloomberg) Oil advanced to the highest in over a month as a combination of declining U.S. petroleum product supplies and signs of stronger demand buttressed expectations for a revival in global consumption.
Futures in New York jumped 1.5% on Wednesday, posting the largest back-to-back daily gains in two weeks. A U.S. government report showed total petroleum stockpiles dropped last week, led by the biggest weekly decrease in distillate inventories since early March. A gauge of demand for overall petroleum products rose to the highest in more than two months. Meanwhile, Goldman Sachs Group Inc. is forecasting an unprecedented jump in global oil demand as vaccination rates rise.
Singapore 0243 GMT: Crude oil futures ticked lower during mid-morning in Asia April 15 on profit-taking, after a bullish report from the US Energy Information Administration sent prices hurtling nearly 5% higher overnight, while an improved demand forecast from the International Energy Agency provided a further boost to sentiment.
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At 10:43 am Singapore time (0243 GMT), the ICE Brent June slipped 3 cents/b (0.04%) lower than the April 13 settle at $66.55/b, while the May NYMEX light sweet crude contract was down 10 cents/b (0.16%) at $63.05/b. Prices ticked lower this morning as investors locked in profits after a meteoric rally overnight, which propelled the Brent and NYMEX light sweet crude markers to settle 4.57% and 4.94% higher at $66.58/b and $63.15/b, respectively.
DeSmog
Background
Based in Washington DC, the American Petroleum Institute (API) is the largest trade association for the oil and gas industry, representing over 600 corporate members “from the largest major oil company to the smallest of independents, come from all segments of the industry.” The API says its mission is to “influence public policy in support of a strong, viable U.S. oil and natural gas industry.” API describes itself as “the only national trade association that represents all aspects of America’s oil and natural gas industry.” [1]
API was initially established on March 20, 1919 in New York City and moved to Washington DC in late 1969. According to its website, API “speak[s] for the oil and natural gas industry to the public, Congress and the Executive Branch, state governments and the media. We negotiate with regulatory agencies, represent the industry in legal proceedings, participate in coalitions and work in partnership with other associatio
EIA reports a more than 3 million-barrel weekly fall in U.S. crude supplies, but product stocks rise
The Energy Information Administration reported Wednesday that U.S. crude inventories fell by 3.5 million barrels for the week ended April 2. IHS Markit had forecast a decline of 700,000 barrels, while the American Petroleum Institute on Tuesday reported a 2.6 million-barrel decrease, according to sources. The EIA data also showed crude stocks at the Cushing, Okla., storage hub declined by 800,000 barrels for the week. The EIA reported, however, that gasoline supply was up by 4 million barrels, while distillate stockpiles climbed 1.5 million barrels for the week. IHS Markit forecast weekly supply increases of 200,000 barrels for gasoline and 500,000 barrels for distillates. Oil prices pared some of their losses shortly after the supply data. May West Texas Intermediate crude was down 23 cents, or 0.4%, at $59.10 a barrel on the New York Mercantile Exchange. Prices were trading at $58.