April 24, 2019

USA oil prices edge up as market eyes tighter supply

07 February 2019, 02:53 | Joann Bryant

USA oil prices edge up as market eyes tighter supply

USA oil prices edge up as market eyes tighter supply

Another factor behind the oil market rally is the supply cuts imposed by the member-states of the Organization of the Petroleum Exporting Countries (OPEC) and allied oil producers.

US oil prices inched up on Tuesday, buoyed by expectations of tightening global supply due to USA sanctions on Venezuela and production cuts led by OPEC.

"Distillate demand increased sharply last week due to the extreme cold weather, which contributed to the declining distillate stocks", said Commerzbank analyst Carsten Fritsch.

Meanwhile, the national price for regular gas on Wednesday averaged about 2.28 US dollars per gallon (about 3.8 liters), compared with 2.26 dollars per gallon a week ago, 2.24 dollars per gallon a month ago and 2.60 dollars per gallon a year ago, according to data of the American Automobile Association (AAA), which is a privately held non-profit national member association and service organization in the United States and Canada.

United States government data on Wednesday showed that domestic crude inventories rose by less than expected last week even as refineries hiked output.

International Brent crude oil futures fell 25 cents, or 0.4 per cent, to $62.44 per barrel.

U.S. West Texas Intermediate (WTI) crude was down 13 cents at $53.53.

Crude futures earlier posted around two-month highs.

The producers known as OPEC+ began cutting production by 1.2 million barrels per day from last month to avert a new supply glut and OPEC has delivered nearly three-quarters of its pledged cutback already, according to a Reuters survey. The cartel and the world's biggest exporter, Saudi Arabia, slashed its output more than expected under the OPEC deal, to 10.2 million barrels a day in January and is aiming to pump around 100,000 barrels less in February.

US imports of Venezuelan crude fell 41 percent to 345,000 barrels a day last week, the least since August, according to preliminary EIA data.

"The price has yet to react in any noticeable way", he said.

Global economic worries have weighed on market sentiment in recent days, offsetting support from signs that global supplies are tightening.

US President Donald Trump said in his State of the Union address that a trade deal was possible with China.

USA energy firms last week cut the number of oil rigs operating to their lowest in eight months as some drillers followed through on plans to spend less on new wells this year.

“With higher production from non-OPEC producers, especially the US, over the last few years, OPEC's market share has been shrinking, ” said James Williams, energy economist at WTRG Economics.

Other News

Trending Now

‘Modern Family’ Renewed For 11th & FINAL Season!
If we were to do it, season 11 would be it, for sure. "We're all trying to figure that out", he said. ABC's award-winning sitcom "Modern Family ", which is in its 10th season, will wrap after season 11.

Spotify buys podcast firms in bid to become world’s largest audio platform
Podcasters have complained that even Apple largely ignores podcasts when compared to its other services. The music-streaming pioneer gobbled up two podcasting companies, Gimlet and Anchor , on Wednesday.

In Democratic response, Abrams sharply rebukes Trump
Trump has also announced plans to withdraw the 2,000 USA troops from Syria, saying Islamic State has largely been defeated there. The government shut down for more than a month over Trump's demands for $5.7 billion for his promised border wall with Mexico.

The Leading Goalscorers In El Clasico History
Real Madrid coach Santiago Solari had said earlier on Tuesday that he hoped Messi would be available. We have the player we believe is the best in world but they also have great players.

Child mental health trials in 370 schools
Kate Middleton went back to school on Tuesday as she took the next step in her fight to help improve the mental health of children.

Mobile pledges three-year price clampdown if merger is approved
Legere did tell the FCC that the combined company might have to raise the taxes, fees and surcharges on its wireless plans. CEO John Leger says if the FCC approves its $26 billion merger with Sprint , T-Mobile will put price increases on hold.

Google's New Chrome Extension Will Alert You If Your Password Is Compromised
"We want to help you stay safe not just on Google , but elsewhere on the web as well", Google said today. Google also says the extension was created to be actionable and not too much of a pest to users.

Indian economy to benefit from China-US trade war, says UNCTAD report
The tech industry has been closely tracking the escalating tariffs imposed by the US and China on one another. The report said Asian countries are likely to suffer most from protectionism.

Kristaps Porzingis reportedly expresses concern with future of New York Knicks
Porzinigis was voted an NBA All-Star for the first time last season and was averaging 22.3 points per game before he tore his ACL. The Knicks (10-40) have struggled without the 23-year-old Porzingis, who has been sidelined for almost a year with an ACL injury.

'Anything can happen' at Manchester United under 'intelligent' Solskjaer says McClaren
Following Jose Mourinho's dismissal and Ole Gunnar Solskjaer's arrival, Rashford has been as clinical as he's ever been in front of goal.