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What’s next? – OIL 01.03.18

Mar 1 2018, 02:59 PM (+06) | Fortfs.com

Oil benchmarks were up in early trading hours on Thursday, with an unexpected build in US inventories offering strong support to prices.

 

The US West Texas Intermediate crude contracts were up 0.21 percent to $61.77 per barrel as of 07:50 GMT. Meanwhile, Brent futures soared 0.28 percent to $64.91 a barrel.

 

Crude benchmarks settled in red territory on Wednesday as official inventory data showed a large increase in both crude and refined products stockpiles.

 

According to the US Energy Information Administration, crude inventories for the week ended February 23 rose 2.4 million barrels.

 

The report also showed gasoline supplies spiking by 2.483 million barrels, against expectations for a 190,000 barrels reduction. Distillate products notched down by 960,000 barrels, more than the 709,000 decline initially estimated.

 

The agency also said US domestic crude production jumped to 10.3 million barrels per day, which leaves the country close to Russia and Saudi Arabia, current world leaders by output.

 

News contributed to mix feelings regarding the future effectiveness of output cuts from the Organization of the Petroleum Exporting Countries and Russia.

 

OPEC and Russia agreed to extend output cuts until the end of 2018, leaving target cuts at 1.8 million barrels per day. All signing parts remain fully committed to the implementation of the deal.

 

Ahead in the week, investors will focus on the release of Baker Hughes’ oil rig count.

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