U.S. oil prices top $60 a barrel on hints of an uptick in demand
Oil futures climbed on Tuesday, with U.S. prices topping $60 a barrel, after a monthly report from OPEC...
Oil futures climbed on Tuesday, with U.S. prices topping $60 a barrel, after a monthly report from OPEC forecasting a jump in economic activity and oil demand, aided by the U.S.’s $1.9 trillion COVID aid package and the rollout of vaccines, helped buttress sentiment in crude markets.
A report on Chinese international trade also provided further evidence that an economic rebound was taking hold in one of the biggest importers of crude.
On Tuesday, West Texas Intermediate crude for May delivery rose 48 cents, to settle at $60.18 a barrel. That was the highest front-month contract finish since April 1, which was the last time prices settled above $60, according to Dow Jones Market Data.
Global benchmark June Brent crude advanced 39 cents, or 0.6%, at $63.67 a barrel, also settling at the highest since the start of April.
In the previous week, the API reported a draw in oil inventories of 2.618 million barrels after analysts had predicted a smaller draw of 1.436-million barrels.
While inventories of crude oil are falling, U.S. oil production slipped below 11 million bpd to 10.9 million bpd during the week ending April 2, according to the latest data from the Energy Information Administration, although the EIA’s prognosis is for a modest increase in U.S. production in May.
Cushing inventory figures rose by 917,000 barrels.
Natural gas is up ahead of Thursday’s storage report which is expected to provide a bearish read with...
Natural gas is up ahead of Thursday’s storage report which is expected to provide a bearish read with an estimated build of +65 to +70 Bcf which compares to the 5 year average of +26 Bcf. S&P Global Platts notes over the past 30 days, domestic output has averaged 91.8 Bcf/d, peaking at a single-day estimate of 92.5 Bcf/d. A rebound back to pre-pandemic could come sooner than previously anticipated thanks to recent, unexpected volume growth from associated gas basins due to less flaring and higher GORs.
May Nymex gas futures were up 6.4 cents higher at $2.62 per MMBtu, as of 10:00 AM ET.
Oil futures are higher though remain range-bound near $60 a barrel, a level around which they have gyrated...
Oil futures are higher though remain range-bound near $60 a barrel, a level around which they have gyrated for almost four weeks. The oil market is trying to shake off near-term demand concerns regarding the resurgence of the virus as well as the easing in the global reflation trade. Clouding the outlook is the prospect for more supply from the U.S. next month, which will coincide with an uptick in OPEC+ output. “As conviction in the reflation trade has faltered a bit, it seems some of that uncertainty has carried over into oil,” said Paul Horsnell, head of commodities research at Standard Chartered. There “doesn’t seem to be much conviction among traders, volumes are low and all a bit lethargic.”
U.S. oil output nears pre-pandemic levels as crude prices build driller confidence
The Permian...
The PermianBasin, the U.S.’s most prolific shale patch, will produce crude oil at levels not seen since the start of the pandemic in the latest sign the global economy is heating back up.
Output in the basin will reach 4.466 million barrels a day in May, the most in a year, and rig counts have touched a one-year high, according to the latest data from the Energy Information Administration. By comparison, nationwide production peaked at over 13 million barrels a day last year before the global pandemic crushed oil prices, forcing scores of drillers to file for bankruptcy and shutter wells.
