Oil prices remain level on OPEC's assurance to rebalance crude market

Oil edged lower on Wednesday, after USA data showed a smaller-than-expected decline in overall crude inventories coupled with another rise in production, hindering OPEC's efforts to reduce a global surplus of crude. USA crude inventories were at 532.3 million barrels, only about 3 million barrels less than the record reached in March. Data from the American Petroleum Institute showed on Tuesday that although crude inventories fell by 840,000 barrels in the week to April 14, they remained near record highs. Price drops accelerated as the dollar strengthened against its peers, curbing the appeal of commodities.

A number of key OPEC members including top exporter Saudi Arabia support extending their supply cut into the second half of 2017 if all participating producers, including Russian Federation and other non-OPEC countries, agree, OPEC sources have told Reuters.

Brent for June settlement fell 83 cents, or 1.5%, to $54.06/bbl on the London-based ICE Futures Europe exchange. It was the lowest close since March 31. The global benchmark crude traded at a $1.97 premium to June WTI.

The report also stated that oil production in February increased to ten million bpd from 9.75 million bpd in January as more oil was processed by domestic refiners. Output in the lower-48 states rose 21,000 barrels a day to 8.72 million, also the highest since August 2015.

"There's been a lot of attention paid to OPEC production cuts, while nearly nobody has focused on the gains elsewhere", Stephen Schork, president of Schork Group Inc., a consulting company in Villanova, Pennsylvania, said by phone. Stocks have dropped sharply in the last several weeks and have fallen below levels seen at this time a year ago, but are still higher than where inventories have been in this decade. "The reasons are twofold". Historically, periods of weak crude oil prices coincided with the contango structure. Analysts and traders surveyed by The Wall Street Journal had predicted that gasoline supplies would drop by 2 million barrels.

Crude fell in the previous two sessions, but it received a boost from comments on Wednesday by the secretary-general of the Organization of the Petroleum Exporting Countries that the group was committed to cutting inventories to the five-year average.

Recommended News

  • Turkey's election board rejects appeals to annul referendum

    Turkey's election board rejects appeals to annul referendum

    Those protests were sparked by plans to uproot trees in Istanbul's Gezi Park to build a shopping mall. The prime minister then called on the main opposition party to be accountable for their actions.
    North Korea parades what appears to be new ICBM

    North Korea parades what appears to be new ICBM

    The official said plans could change in the unlikely event a North Korean missile targets South Korea, Japan or US territory. North Korea is thought to have a small arsenal of atomic bombs and an impressive array of short- and medium-range missiles.

    USA accuses Iran of 'alarming ongoing provocations'

    But Rex Tillerson has come pretty close to saying the agreement is not worth keeping, even though he's had to admit it's working. He also said that the Trump administration launched a review of its policy toward Tehran.
  • Analyst Price Targets On NMC Health (LON:NMC)

    Shore Capital reiterated a "hold" rating on shares of Merlin Entertainments PLC in a research note on Thursday, March 2nd. After $0.17 actual EPS reported by Headwaters Inc for the previous quarter, Wall Street now forecasts 0.00% EPS growth.

    SL Green (SLG) Q4 FFO Meets Estimates, Revenues Decline

    Tiaa Cref Invest Mngmt Limited Liability Corporation reported 0.01% of its portfolio in CoreSite Realty Corp (NYSE:COR). Further, in March, the company inked a deal to sell 90% interest in 102 Greene Street for net proceeds of $38 million.

    Lady Gaga, Prince William talk mental health in powerful FaceTime conversation

    Prince William also praised Lady Gaga for her open letter, saying it was "brave" of her "to write down such personal feelings". Gaga concludes: "We're not hiding anymore". "You're not alone", Gaga says at the end of the video .
  • Brighton chairman says won't break the bank after Premier League promotion

    Brighton chairman says won't break the bank after Premier League promotion

    He added in The Argus : "We're not there for just one season, we intend to be there for a while". It was unbelievable and all of the people involved in this football club deserve it".
    Vineland family meets Kellyanne Conway at White House Easter Egg roll

    Vineland family meets Kellyanne Conway at White House Easter Egg roll

    It's an event at the White House that brings out thousands of families for fun, colorful eggs, and a few games. Unfortunately, the President committed two gaffes, not including the undercover Donnie Darko bunny.

    Indians feared killed in US' mother of all bombs attack

    The report also identified two militants killed in the raid as Commander Mohammad, an Indian national and Geeta, an Indian national.
  • Judge Blocks Rules That Forced Closure of Abortion Clinics in Missouri

    Judge Blocks Rules That Forced Closure of Abortion Clinics in Missouri

    Republican State Attorney General Josh Hawley, who'd praised the restrictions, vowed to appeal the ruling. Planned Parenthood affiliates with health centers in Missouri sought the preliminary injunction.
    Tess Holliday boycotts Uber after she claims driver body shamed her

    Tess Holliday boycotts Uber after she claims driver body shamed her

    In 2015, she was among several plus-sized models who were photoshopped to appear thinner and "healthier". Uber drivers are usually not professional drivers, it should be noted.
    Saints Row 2 Free for Limited Time Thanks to GOG

    Saints Row 2 Free for Limited Time Thanks to GOG

    Deep Silver is now doing a giveaway of Volition's GTA-like open-world action game, Saints Row 2, for a period of 48 hours. Saints Row IV and Saints Row: Gat Out of Hell are also on sale at the site for $4.99 and $3.74, respectively.

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.