Oil firms as Saudis trim exports, US output forecast reduced

  • Oil firms as Saudis trim exports, US output forecast reduced

Oil firms as Saudis trim exports, US output forecast reduced

Other EIA data showed US crude output edged down from a record high, dropping 100,000 barrels per day (bpd) to 12 million bpd last week.

Prices continue to be supported by the on-going supply cuts from OPEC and its allies as well as the US sanctions against Iran and Venezuela.

Concern about global economic growth also continued to weigh on prices as it would dampen demand in some of the biggest importers of the commodity. On Thursday, these issues could be raised again when China releases its report on Industrial Production. United States crude shipments are projected to stand at 8.93 million barrels a day in five years - just 0.59 million less that Riyadh, and 0.24 million barrels more than Moscow.

Brent crude futures were at $66.75 per barrel, up 17 cents, or 0.3 per cent.

The so-called OPEC+ alliance, including Russian Federation and other producers, agreed in December to reduce supply by 1.2 million bpd from 1 January for six months, which will help to boost oil prices after last year's downward trend.

"Failures in the electrical system".

In the near term, the latest reports on United States inventories are expected to show a rise in crude stocks. In 2020, production is expected to reach 13.03 million barrels a day - 170,000 barrels a day lower than last month's estimate.

The API also reported a huge draw in gasoline inventories of 5.8 million barrels for the week-ending March 8.

Gasoline stocks fell by 4.6 million barrels, almost double analysts' expectations in a Reuters poll for a 2.5 million barrels drop.

US crude oil stockpiles declined unexpectedly last week as output slipped from record highs and refining rates edged up, while gasoline stocks decreased and distillate inventories rose, the Energy Information Administration said on Wednesday.

"It was the first time that the United States in the last two decades was the No. 1 driver of oil consumption growth".

The move is the latest sign Riyadh is determined to regain control of the oil market as prices remain well below the level that many OPEC members need to cover their government spending, the news agency added.

"This shows Saudi Arabia's resolve to keep the oil market balanced by keeping oil supply tight", said Carsten Fritsch, an analyst at Commerzbank.