Oil prices settled slightly higher on Friday as lower U.S. crude inventories and increasing support for continued OPEC-led production cuts inspired hope that the global supply glut can be reduced.
“Owing to the rapid recovery in U.S. oil production, OPEC obviously only has limited influence on prices via supply curbs,” it said.
U.S. drillers added oil rigs for the 17th straight week, Baker Hughes data showed on Friday.
Oil rigs rose 9 to 712.
OPEC and other producers meet on May 25 to decide whether to extend the output cuts they agreed to last November.
Oil Prices Slip As The U.S. Rig Count Continues To Climb
The total oil and gas rig count in the U.S. now stands at 885 rigs, or 479 above the count a year ago.
Oil rigs increased by 9, while gas rigs fell by 1.
Shortly after data release, both benchmarks started to slip further, with WTI trading at $47.59 or -0.5 percent and Brent trading at $50.61, down 0.32 percent.
The number of active oil and gas rigs in the United States rose by 8 on Friday, according to oilfield services provider Baker Hughes.
Cana Woodford added 2 rigs, and Granite Wash, Utica, and Williston basins each added one rig.
Oil Rallies Higher, Undeterred By ‘Surprise Surge’ In U.S. Production
The drop in exports is led by falling production; oil production is said to have dropped to 2.02 million barrels per day in March.
It projects 820,000 bpd of supply growth from the U.S. this year.
On the supply side, it has boosted its expectations for non-OPEC supply growth by 370,000 bpd from last month, up to 950,000 bpd, predominantly driven by U.S. shale production.
(Click to enlarge)2) Pemex announced late last week that Mexican crude exports hit a record low in March at just over 1 million barrels per day.
(Click to enlarge)The charts below are from the actual OPEC report, showing OPEC’s projection for the U.S., Canada and Brazil to lead supply growth higher this year, while Chinese output ebbs again:By Matt SmithMore Top Reads From Oilprice.com: