Ana sayfa » Oil increases its gains

Oil increases its gains

by BUNKERIST

Oil rose on Thursday as OPEC + producers may make a decision not to support the increase in production at the meeting later in the day boosted by the decline in US fuel inventories.

Brent crude futures added 52 cents, or 0.8%, to $64.59 a barrel, as of 0709 GMT, after climbing more than 2% on Wednesday. West Texas Intermediate (WTI) crude futures gained 43 cents, or 0.7% to $61.71 a barrel.

OPEC and its allies are considering shifting production cuts to April instead of increasing production as oil demand remains fragile due to the coronavirus.

The market was expecting OPEC + to reduce its production cuts by nearly 500,000 barrels a day in April, and OPEC’s leader Saudi Arabia would end the additional 1 million barrels of voluntary production cuts.

The steady recovery in crude oil prices has begun to reveal differences between OPEC + countries, but the group is seeking a compromise for a nominal output increase of 500,000 barrels. Meanwhile, it is expected  that Saudi Arabia to maintain its voluntary extra cut of 994,000 barrels per day, keeping its production quota at 8,256 million barrels per day.

Houthi forces in Yemen announced Thursday that they have fired missiles at the Saudi Aramco facility in Jeddah, Saudi Arabia’s Red Sea city. Saudi officials have not yet confirmed, but also this attack had an effect on prices increasing. This is believed to be the reason for the price increases in Asia this morning.

In the United States, gasoline stocks are at their lowest in 30 years, despite a record increase in crude oil stocks of more than 21 million barrels last week. Because of the freezing cold in Texas, refining fell to an all-time low.