Forecast’s on the rise of shale oil output and plunging stocks in the stateside has brought oil prices on the positive note last Wednesday. It is now on track to notch its eight-week high.
Investors are currently concerned on the released announcement of Saudi Arabia at the meeting between the Organization of the Petroleum Exporting Countries (OPEC) and other producers, including Russia, which suggested it is set to curb crude exports as much as 6.6 million barrels per day (bpd) this August 1. Nigeria is also one of the members that agreed to join the deal by reducing its production from 1.8 million bpd the moment it steadies from that handle.
ANZ noted that the movement have seen projections of a further decline in stockpiles in contrast to the plans of Saudi Arabia, adding that there are positivity’s on the U.S. shale gas production on the back of industry remarks which suggested the rig count in North America has not been progressing.
U.S. West Texas Intermediate (WTI) crude futures were 0.9 percent up on the day or 42 cents to end at $48.31 per barrel. Global benchmark for oil Brent crude futures rose more than 0.6 percent or 32 cents to trade at $50.52 per barrel. Brent prices rallied as much as 3 percent last Tuesday.
Crude stocks in the United States dropped on the previous week due to rising refineries. According to the data’s from the American Petroleum Institute (API), distillate stocks dropped while gasoline stockpiles rise. Crude inventories slipped more than 10.2 million barrels to 487 million in the week until July 21, higher compared to the expected 2.6 million barrel drop.