Oil Jumps Over 1% As Sentiment Swings Back To Positive Demand Outlook
by Ship & Bunker News Team
Wednesday April 28, 2021 Yet another
U.S. distillate drawdown that defied analytical expectations stoked demand recovery sentiment and caused traders to increase oil prices by over
1 percent on Wednesday. The
Energy Information Administration on Wednesday disclosed that distillate stockpiles, which include heating oil and diesel fuel, fell by
3.3 million barrels in the week, and refining rates rose to
85.4 percent of capacity, their highest since March 2020. Also, U.S. crude inventories rose by only
90,000 barrels last week, much smaller than analysts forecasts for a
659,000 barrel build.
Brent crude for June rose 42 cents, or 0.6%, to $67.69 a barrel by 06:22 GMT while US West Texas Intermediate crude for June was at $64.22 a barrel, up 36 cents, or 0.6%.
Saudi Arabia has volunteered to cut its own output by one million barrels per day (bpd) to help avoid oversupplying the market.
Russia and Saudi Arabia have made a fragile oil alliance work during the pandemic, but their marriage of convenience could be undone as a rebounding market dredges up old tensions, analysts say.
Despite successfully coordinating policy and output of crude for nearly five years, a rupture can never be ruled out , said Philippe Sebille-Lopez.
While the US is the world s largest oil producer, Russia ranks second, followed by Saudi Arabia.
Russia and OPEC leader Saudi Arabia have made a fragile oil alliance work during the pandemic, but their marriage of convenience could be undone as a rebounding market dredges up old tensions, analysts said.
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SINGAPORE Oil prices extended gains on Thursday after rising 1% the previous session, as bullish forecasts on recovering demand this summer outweighed concerns about the impact of rising COVID-19 cases in India, Japan and Brazil.
Brent crude for June rose 42 cents, or 0.6%, to $67.69 a barrel by 0622 GMT, while U.S. West Texas Intermediate crude for June was at $64.22 a barrel, up 36 cents, or 0.6%.
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The Organization of the Petroleum Exporting Countries (OPEC), together with Russia and their allies, a group known as OPEC+, stuck to their plans for a gradual easing of oil production restrictions from May to July, after OPEC slightly raised its 2021 demand growth forecast to 6 million barrels per day. The group also expects global stocks to reach 2.95 billion barrels in July, taking them below th
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