Oil Prices Driven by OPEC + Confidence, Traders Awaiting Storage Data

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Oil futures rose on Wednesday, finding support after the Organization of the Petroleum Exporting Countries and its allies maintained their plans to continue gradually easing production restrictions, indicating confidence in the demand outlook despite a increase in COVID-19 cases in India. West Texas Intermediate crude for June delivery CL00, + 0.67% CLM21, + 0.67% rose 54 cents, or 0.9%, to $ 63.48 a barrel on the New York Mercantile Exchange. June Brent BRNM21 crude, + 0.53%, the world benchmark, rose 45 cents, or 0.7%, to $ 66.87 a barrel on ICE Futures Europe. July’s Brent BRN00, + 0.65% BRNN21, + 0.65%, the most traded contract, rose 52 cents, or 0.8%, to $ 66.39 a barrel.

OPEC and its allies, a group known as OPEC +, decided on Wednesday to maintain a plan to gradually relax production restrictions starting next month. “The market clearly sees this decision as positive as Brent is making a renewed offer for the next important threshold, namely $ 67 per barrel,” Commerzbank analyst Eugen Weinberg said in a note. “However, in our opinion, there is definitely a risk that increases in OPEC + production of more than 2.1 million barrels in the next three months could result in a surplus of supply given the current restrictions on the major oil importing countries such as India, Japan and Turkey. . “Oil bulls were also shaking up industry data showing a surge in US crude inventories. The American Petroleum Institute reported Tuesday night that US crude supplies increased by 4 , 3 million barrels for the week ending April 23. The data reportedly also showed that gasoline stocks decreased by 1.3 million barrels, while distillate inventories decreased by 2 , 4 million barrels. The Energy Information Administration’s most closely watched inventory data is scheduled for release Wednesday morning. On average, the EIA is expected to show a decline in crude inventories of 200,000. barrels, according to an analyst survey conducted by S&P Global Platts, which also forecast flat gasoline inventories and a 1.2 million decrease in supply. s of barrels of distillates.