Crude Futures Advance on IEA Supply Warning
by Bloomberg | Julia Fanzeres and Josyana Joshua
click here to read the original article at Rigzone.com
*this article was not written by Roseland Oil & Gas
Oil rose to its highest closing price in 2024 as the International Energy Agency warned of a supply deficit throughout the year.
Prices:
- WTI for April delivery rose 1.9% to settle at $81.26 a barrel in New York.
- Brent for May settlement gained 1.7% to $85.42 a barrel.
West Texas Intermediate settled above $81 a barrel, the highest since November and topping the key psychological level of $80, which has acted as a barrier for the past few months. The IEA reversed an earlier forecast for a surplus and now expects a shortfall if OPEC+ continues output cuts in the second half of the year.
Crude has risen about 13% this year while remaining in a tight trading band for the last three months. While production cuts from OPEC+ have shown signs of tightening supplies in the short term, output from outside the cartel has risen and traders are still concerned about demand in China.
Despite the recent leg higher, traders are expressing caution about fully buying into the rally as quick jumps have often led to selloffs in recent months.
Meanwhile in the US, crude inventories dropped for the first time in seven weeks, including a decline at the hub in Cushing, Oklahoma. The drawdown pushed WTI’s prompt spread to strengthen to 57 cents in backwardation, the highest in a week.
by Bloomberg | Julia Fanzeres and Josyana Joshua
click here to read the original article at Rigzone.com
*this article was not written by Roseland Oil & Gas