Futures gained as much as 1.3 percent in New York after falling 1.2 percent on Tuesday. Inventories dropped by 5.79 million barrels last week, the American Petroleum Institute was said to report. Government data Wednesday will show a 2 million barrel decline, according to a Bloomberg survey. The Energy Information Administration boosted its estimate for average U.S. output this year to 9.31 million barrels a day, up from 9.22 million a day projected in April. “Is the oil inventory overhang being reduced at a faster pace due to the cuts? That dynamic will be a major force at play for the next OPEC meeting in two weeks time,” said Giovanni Staunovo, an analyst at UBS Group AG in Zurich. “In the U.S., considering the rigs added over the last six months, a supply response will come in the second half of the year.” click Read More below for additional detail
Oil prices fell on Thursday as a meeting of the OPEC+ alliance yielded no discussion about deepening supply cuts but focused instead on bringing Nigerian and Iraqi output down to their agreed quotas.
Saudi Arabia’s new energy minister, Prince Abdulaziz said, however, his country would keep cutting by more than it pledged in a deal that has throttled supply by OPEC and its allies by 1.2 million barrels per day.