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RelatedAnalysts at Citi Group also expect U.S. storage levels to fall as refineries under maintenance are brought back online.
Oil prices on Wednesday regained some of their recent losses, but remain below the US$50-per-barrel threshold.
The rise in storage levels last week was in large part due to higher U.S. oil imports, Nuttall said.
In February the Saudis increased production by 180,000 bpd, though the country still remains well below its target production levels.
But Sprott Asset Management portfolio manager Eric Nuttall expects prices will continue to rise gradually as storage levels are eventually drawn down.
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Outside OPEC cuts, Libya and Nigeria still on slow oil recovery path
Nigerian output in March is now expected to be about 1.43 million bpd, down from 1.54 million bpd in December, after February’s brief rise to 1.65 million bpd.
“The success of these cuts, debatable as they may be, will not hinge on Nigeria and Libya,” said ING analyst Hamza Khan.
An oil price rally has already stumbled since the deal, but Nigeria and Libya are not to blame.
OPEC members and non-OPEC producers agreed to cut output by 1.8 million bpd for six months from Jan. 1.
Nigeria is chasing a target of 2.2 million bpd, last achieved in 2012, according to Reuters calculations.
collected by :John Locas