Crude Oil Higher on API Data, OPEC Cuts

oil-rigsGasoline inventories fell by 3.15 million barrels, according to the report;

Kuwait’s Oil Minister said on Tuesday #OPEC is committed to restore the balance of the oil market

 

The American Petroleum Institute #API reported a draw of 1.5 million barrels in crude oil inventories for last week, compared to analyst expectations of  a draw of 2.3 million barrels for the week ending May 19. This week’s crude oil inventory draw was accompanied by across the board draws for gasoline, distillates, and oil at the Cushing, Oklahoma facility as well.

Gasoline inventories fell by 3.15 million barrels, according to the report.

For the Week, distillate inventories fell by 1.85 million barrels—offsetting the 1.8 million barrel build last week.

The U.S. Energy Information Administration report on oil inventories is due Wednesday at 10:30 a.m. EDT.

WTI prices have risen this week, from $48.76 last week to $51.41 per barrel on Tuesday. Brent was trading at $54.11, compared to $51.78 last week.

#WTI = West Texas Intermediate

Prices are supported by production cuts from OPEC but prices have been kept in check by domestic productions.

Kuwait Calls for Deeper Cuts

Kuwait’s Oil Minister said on Tuesday #OPEC is committed to restore the balance of the oil market and is not ruling out any option for discussion at the upcoming meeting on Thursday, including considering deeper cuts.

“All options are on the table and could be discussed. However, any agreement should be satisfactory for all parties. And if necessity arises, we could increase the output cut. But it is premature to talk about that now,” the minister said.

He added that Kuwait fully supports the extension of the deal for nine months, as well as all efforts aimed at rebalancing the global oil market. He added that four other non-OPEC countries—Egypt, Norway, Turkmenistan, and Indonesia—could join the output cuts.

Although signs from OPEC producers point to support for a rollover of the cuts, not all members have voiced support for a nine-month extension. $USO closed at $10.64

#OPEC = Organization of Petroleum Exporting Countries

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