Oil rallies as U.S. gasoline inventory draw offsets crude build

Oil climbs to 5-month high amid OPEC cuts, US sanctions, Libya fighting

Venezuela reported a production figure of 960,000 b/d, down by a massive 472,000 b/d, as power outages and US sanctions cripple the South American oil producer.Saudi Arabia's crude output fell 289,000 b/d in March, to average 9.79 million b/d, according to an average of the six secondary sources that OPEC uses to gauge production.

OPEC, Russia and other non-member oil producers agreed to cut output by 1.2 million bpd from January 1 for six months and are set to meet on June 25-26 to decide whether to extend the pact.

Besides, the U.S. crude had also experienced a five-month high to $64.51 on Tuesday (April 9th), largely led by a sanction on Venezuelan and Iranian crude amid a surging United States oil inventory.

Rising U.S. crude stocks dragged oil lower on Thursday but prices continued to find a floor as OPEC-led cuts and freefalling Venezuelan output tightened global supplies.

The EIA expected that West Texas Intermediate crude oil prices will average 8 dollars per barrel lower than Brent prices in the first half of 2019 before the discount gradually falls to 4 dollars per barrel in late-2019 and through 2020.

UAE's Suhail bin Mohammed al-Mazroui also said that compliance with the cuts by both Russian Federation and OPEC's second largest producer Iraq has increased in March, adding that he expected the oil market to achieve balance by the end of 2019.

Global oil demand is estimated to average 99.91 million bpd this year, compared with 98.70 million bpd in 2018, OPEC said. "Declines from these two exempt countries account for nearly 47 percent of the reduction seen from OPEC", ING said.

Ontario scientist among global team unveiling first image of a black hole
It is this point-of-no-return precipice, called the Event Horizon , that astronomers have tried to observe for the first time . Black holes pull in anything nearby with unfathomable force and gravity, even pulling in light.

Meanwhile, the latest EIA report showed that the USA crude inventories rose 7 million barrels to 456.6 million barrels in the last week, their highest since November 2017.

ANZ bank said on Wednesday that it expects Brent oil prices to push "towards $79 per barrel".

Russia, not an OPEC-member but a reluctant participant in the supply cuts, signalled yesterday it wanted to raise output when it meets with OPEC in June because of falling stockpiles.

The Organization of the Petroleum Exporting Countries' combined oil production plunged by 534,000 barrels per day in March, it said in a report citing secondary sources.

Futures fell as much as 1.6 percent in NY, a day after government data showed American crude inventories swelling to the highest since 2017.

The United States and China have yet to find a solution to their dispute on trade, while the International Monetary Fund on Tuesday cut its global economic growth forecasts.

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