Oil gains after report shows larger than expected United States stock draws

Gold Hourly

U.S. West Texas Intermediate (WTI) crude futures were up 41 cents at $71.90 after also hitting their highest since November 2014, at $72.30 a barrel.

Brent crude futures were at $79.69 a barrel at 0913 GMT, up 39 cents.

Renewed US sanctions on third-largest Opec producer Iran and shrinking supplies from Venezuela have buoyed crude's recent rally.

"The geopolitical noise and escalation fears are here to stay", said Norbert Rücker, head of macro and commodity research at Swiss bank Julius Baer.

US crude inventories (USOILC=ECI) fell by 1.4 million barrels in the week to May 11, compared with analyst expectations for a 763,000 barrel decrease.

ANZ said the falling USA inventories were "raising concerns of tight markets heading into the US driving season", during which demand typically rises.

Analysts say the glut that had weighed on prices for the past three years has finally been eliminated, thanks to strong demand in key markets like China and output cuts by OPEC and its non-cartel partners including Russian Federation.

At $80 per barrel, Asia's thirst for oil costs the region a whopping $1 trillion a year, more than twice what it was in 2015/2016, the two years prior to the OPEC-cuts which started in 2017.

US crude output has soared 27 percent in the last two years to a record 10.72 million barrels per day, putting it within reach of top producer Russia's 11 million bpd.

Morgan Stanley's report predicts that the Brent price will reach $90 per barrel by 2020 as demand for crude oil skyrockets by 1.5 million barrels a day, supported by the new shipping rules.

"OPEC and Russian Federation have been implementing their policies efficiently", Pouyanne said, referring to the Organisation of the Petroleum Exporting Countries' efforts to clamp down on supply.

India, the third-largest consumer of oil after the US and China, would be especially hard-hit if prices keep rising.

"The recent jump in oil prices will take its toll", said the agency.

The Paris-based IEA cut its forecast for global demand growth to 1.4 million barrels per day for 2018, from a previous estimate of 1.5 million bpd.

Analysts pointed out that the oil market remained relatively calm as there was no new catalyst on Thursday, but uncertainties remain due to US sanctions on Iran.

"The potential double supply shortfall represented by Iran and Venezuela could present a major challenge for producers to fend off sharp price rises and fill the gap, not just in terms of the number of barrels but also in terms of oil quality", it said.

Opec and other producers such as Russian Federation have restrained supplies in support of higher prices.

Related News:

  • USA  names suspect in Vault 7 leaks, but unable to file charges

    USA names suspect in Vault 7 leaks, but unable to file charges

    No charges have been filed against Schulte in that investigation, and his defense lawyers have insisted he was not involved. The documents themselves covered a period from 2013 to 2016, when Schulte had been employed at the agency.
    Sports betting could soon hit Maryland, West Virginia

    Sports betting could soon hit Maryland, West Virginia

    Musburger says sports betting and influence scandals are rare, and all that bookmakers in Las Vegas want is integrity and honesty. It does not mention sports betting, which, until now could occur only in Nevada where such gambling predated the federal law.
    Ebola virus disease - Democratic Republic of the Congo

    Ebola virus disease - Democratic Republic of the Congo

    At this stage, it can also only be used in the context of a clinical trial-plans for which are already in the works. The vaccine was developed by the Canadian government and its production has been licensed to Merck in the U.S.
  • "Yanny Vs. Laurel" Doctors Weigh In

    Hence, they may not have been primed to hear either Yanny or Laurel like English-speakers would have . We were discussing this in the KHQ Newsroom too and it seems like everyone is split.
    Amazon Alexa developers get eight new voices

    Amazon Alexa developers get eight new voices

    More recently, Amazon launched the " Remember This " feature for Alexa, essentially giving the virtual assistant a memory. For example, in an adventure story or game, developers can give distinct voices to different characters.
    Do Your Favorite Celebrities Hear Yanny or Laurel?

    Do Your Favorite Celebrities Hear Yanny or Laurel?

    It is a man saying a word (It's Laurel , get your Yanny butts outta here!) and people are hearing completely different things. As for the dress that caused an earlier commotion, some people said it was white and gold, while others saw blue and black .
  • Meghan Markle's Dad Alert and Out of Surgery

    Meghan Markle's Dad Alert and Out of Surgery

    "If it's about my life or my father's, there's something known in this country as freedom of speech". Meghan Markle during a visit to the University of Bath Sports Training Village, April 6, 2018.
    1 killed in 'intentional' explosion at CA medical facility

    1 killed in 'intentional' explosion at CA medical facility

    Pacific time of a possible explosion at a two-story building in Aliso Viejo, California. A woman was pronounced dead at the scene, and three others were injured, OCFA said.
    Newcastle thrash Chelsea 3 - 0 in epic Premier League clash

    Newcastle thrash Chelsea 3 - 0 in epic Premier League clash

    The form of the two teams couldn't be any more different with Chelsea winning four of their last five games, drawing once. Chelsea will need their talisman at his very best on Sunday if they have any chance at pipping Liverpool to 4th place.
  • 'Infinity War' breaks box office record in Vietnam

    'Infinity War' breaks box office record in Vietnam

    It's no secret that there are some big developments in Wakanda during the events of Avengers: Infinity War . But that isn't necessarily a bad thing. "Two or three films ago I was like "okay, a couple more".
    Why has East Coast Mainline hit the buffers again?

    Why has East Coast Mainline hit the buffers again?

    The London to Edinburgh line has been run by a joint venture between Stagecoach and Virgin , for the last three years. The government is set to renationalise the East Coast mainline , one of Britain's busiest railway lines.

    Oil prices settle higher amid economic data

    The tightening market has all but eliminated a global supply overhang that depressed crude prices between late 2014 and early 2017.


Most liked

Trump Rescues Summit With Appeasing Words For Kim Jong
Pyongyang warned the United States to call off the exercises or "think twice" about the fate of the Trump-Kim summit. Bolton, who served in the State Department and as United Nations ambassador in the Bush administration, replaced Lt.

Call of Duty: Black Ops 4 Multiplayer Trailer Revealed
A while back it was rumored that Black Ops 4 would lack a campaign but, like any rumor, it should be taken with a grain of salt. The mode will feature a map "100x bigger" than a standard Call of Duty map and utilizes the new manual health regen feature.

Trump CIA pick Gina Haspel heads for confirmation amid resistance
Among Democrats supporting Haspel were several up for re-election this fall in states where Trump is popular, including Sen. John McCain , whose long-distance rejection of Haspel as he battles brain cancer at home hit a political nerve.

Behind the 'masking' drug that got Robinson Cano banned
Mariners General Manager Jerry Dipoto spoke about losing one of the team's top players a couple of hours before the game. Cano is now out of action with a broken right pinky , suffered when he was hit by a pitch in a game Sunday in Detroit.

Chrissy Teigen and John became the parents of Lengend
And the new arrival is sure to be a welcome addition, after Chrissy recently moaned that she was "so over" being pregnant. Model Chrissy Teigen and singer John Legend arrive at the 88th Academy Awards in Hollywood, Calif., Feb. 28, 2016.

Liverpool boss Jurgen Klopp handed World Cup news to Trent Alexander-Arnold
Gareth Southgate has named the England squad he is taking to Russian Federation for the World Cup this summer. If they are unsure what that is, most of the England squad will be able to tell them it is a computer game.

Lyft Follows Uber in Ending Forced Arbitration For Sexual Harassment Claims
Uber chief executive Dara Khosrowshahi said the move was "an important step forward in our commitment to safety and transparency". Back in February 2017, a former Uber engineer penned a personal essay about the sexual harassment she faced at the company.

Celtics, Morris shut down LeBron
He doubled his total over the rest of the game, finishing the game with a triple-double of 42 points, 12 assists and 10 rebounds. James and Brown combined for 35 of the game's first 50 points as the Cavaliers jumped out to a 27-23 lead after one quarter.

Iraq rivals jostle for power after Sadr's shock win
Sadr has led two uprisings against USA forces in Iraq and is one of the few Shiite leaders to distance himself from Iran. On May 12, Iraqis cast their votes in the first general election following the overthrow of Islamic State (ISIS).

Remembering Tom Wolfe, American writer with an 'anthropologist's delight'
The film version of " The Right Stuff ", about the Mercury Seven astronauts, was directed by Philip Kaufman in 1983. Reports suggest he was battling an infection and pneumonia in hospital when he died.

It's back to work for Sonam Kapoor post her starry wedding
Post this movie, she will resume shooting for the other films in her basket- Ek Ladki Ko Dekha Toh Aisa Laga and The Zoya Factor . But the actress who recently got married to beau Anand Ahuja is nervous about her red carpet appearance.

Juventus claim seventh consecutive Serie A title after goalless draw at Roma
Juventus have wrapped up a seventh consecutive Serie A title , holding off a strong challenge from Napoli to defend the Scudetto again.

Korea promised booming future if it denuclearises
That means Trump's stewardship of the nuclear crisis is now far more popular than the President himself, the network said. Not all of Trump's attention-grabbing gambits have worked - and the potential risks going forward are daunting.

I'll arrive at Ibrox as a natural leader, says Scott Arfield
The Canadian flew into Glasgow Airport this morning and has passed a medical, despite missing the last 11 games of Burnley's season with a calf strain.

Deadpool star Ryan Reynolds is a surprisingly great singer
Glance quickly at the poster for Deadpool 2 (tagline: "From the Studio That Killed Wolverine") and you might worry slightly. This is the part of the movie that has the most spoilers, so see this movie before social media ruins it.