As it stated in
Saudi Oil Minister Khalid al-Falih.
The Saudi oil minister confirmed last week that the key reason for extending the supply cuts beyond June is for oil inventories to fall back within their five-year range.
US crude inventories are expected to start drawing in April before global crude inventories start to draw-down from May.”Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.
A research note by Citi’s commodity analysts shows that delicate negotiations are ahead for OPEC members and Russia to further cut supply and stabilise oil prices.
That has put pressure on the Saudi energy minister who has gone ahead with the supply cuts agreed to in November while other producers kept the oil flowing.
Oil prices recover from November lows
Oil prices could rise to $60 per barrel in the second quarter, assuming inventory draws and oil producer output cuts remain in place, Barclays said in a report on Thursday.
Brent crude futures, the international benchmark for oil, were at $50.99 per barrel at 0621 GMT, up 0.7% from their last close.
Oil prices bounced off from losses chalked up the session before, but the market remained under pressure as bloated U.S. crude inventories and rising output dampen OPEC-led efforts to curb global production, as Reuters reported earlier today.
U.S. West Texas Intermediate (WTI) crude futures were up 37 cents, or 0.8%, at $48.41 a barrel, after testing support at $47 overnight.
Analysts said Brent had found technical support around $50 a barrel and was being pushed up as traders took new long positions after crude hit multi-month lows overnight.
Crude supplies swelled by 5 million barrels, bringing the total to a record high of 533.1 million barrels.
Crude prices regained some lost ground on Thursday after data showed U.S. gasoline and distillate stocks declined despite a continued build-up in American production.
Prices ticked higher after data from the U.S. Energy Information Administration showed U.S. gasoline stocks fell by 2.8 million barrels in the week ended March 17, marking a fifth straight drawdown.
Last year, OPEC and a handful of producers including Russia clinched a deal to cut their combined daily productions by 1.8 million barrels.
Distillate stocks also fell by 1.9 million barrels.
collected by :Jack Alex