Benchmark oil is getting stronger at the Wednesday trading session. At the same time, investors are studying the reports about lower fuel reserves in the USA as well as a probable renewal of the OPEC+ agreement.
Today, the prices for Brent May futures on the London ICE Futures rose to some $67.40/bbl. WTI oil in April futures on NYMEX reportedly rose to some $57.95 on Wednesday.
The American Petroleum Insititute stated that commercial oil reserves in the USA decreased by 2.58 million bbl over the week ending March 8. These results conflict with the previously voiced expectations of an upturn by 2.655 million bbl.
The petroleum reserves decreased by 5.8 million bbl over the period under review, which 2-fold above the anticipated level. However, the reports showed higher reserves of distillates (195,000 up).
According to the sources in the know, the cartel is discussing the motion of Saudi Arabia to renew the production cut agreement for H2 2019. The proposal reportedly suggests either the same or somewhat lower quotas.
The US Energy Department downgraded its outlook for 2019 oil production in the country to 12.3 million bbl per day (12.4 million bbl per day earlier). Moreover, the authority also revised the production forecast for 2020 to 13 million bbl per day (200,000 bbl per day down).
As the EIA forecast reads, spot prices for Brent oil are likely to be at some $63/bbl in 2019 and $62/bbl in 2020 ($71/bbl on average in 2018).
Traders are waiting for the oil reserves report by the US Energy Department to be unveiled today. The market analysts expect that oil reserves may add 3.3 million bbl.