UNITED STATES (VOP TODAY NEWS) — Oil traders will continue to focus on expectations for global crude supply next week amid signs that OPEC-led production cuts have helped narrow the oversupply market.
OPEC, which agreed with some non-associate producers such as Russia, known as OPEC +, late last year to cut production by 1.2 million barrels per day to remove the bottleneck and support prices.
Speaking on the sidelines of the OPEC meeting and the ministerial non-OPEC ministerial oversight committee in Baku, Azerbaijan on Sunday, the Saudi energy minister said he was optimistic about the continued commitment to the OPEC-OPEC cut-off agreement.
“He is clearly optimistic that the implementation of our Opec + agreement will improve, it is already strong by historical standards,” Khalid al-Falih said.
OPEC ministers will meet on April 17-18 to decide on production policy.
You will attract new data on US commercial crude inventories and production activity market attention this week.
The US Energy Information Administration reported that US crude supplies fell unexpectedly by 3.9 million barrels for the week ending March 8. The Energy Information Administration also reported that the total domestic production of crude oil fell from a record area, down 100,000 barrels to 12 million barrels per day.
Oil futures settled lower on Friday as prices in the US fell from a four-month high as concerns about the economy eased.
The price of WTI fell 9 cents to settle at $ 58.52 a barrel at the close of trading. It rose earlier to $ 58.95, the highest since November 13.
For the week, the US index rose 4.3%, the best weekly gain in about a month.
Meanwhile, Brent crude futures closed down 7 cents at $ 67.16 a barrel on Friday.
Brent prices, which hit their highest level so far this year at $ 68.14, rose nearly 2.1% during the week.
With two weeks remaining at the end of the first quarter, WTI increased by 29% year-on-year and Brent by 25%. Both indexes benefited significantly from OPEC’s intensive production cuts since the beginning of January. However, rising US production threatens to reverse these cuts.
The number of active oil drilling rigs in the United States fell for the fourth week in a row, but the decline was only one to 833, according to data released Friday by energy services firm Baker Hughes.
“The market is still caught between economic concerns, rising US oil production and OPEC’s significant commitment,” said Stephen Brinock, BPM’s oil broker.
Prior to next week, Investing.com compiled a list of major events likely to affect the oil market.
Monday 18 March
The Energy Information Administration (EIA) issues its oil production forecast for April.
Tuesday 19 March
The US Petroleum Institute publishes its weekly update on US oil supplies.
Wednesday 20 March
The Energy Information Administration releases its weekly report on oil stocks.
Friday 22 March
Baker Hughes will publish weekly data on the number of US oil platforms.
This article is written and prepared by our foreign editors writing for VOP from different countries around the world – edited and published by VOP staff in our newsroom.
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