US Inventory Drop, OPEC Action Lift Oil Prices

by Bloomberg | Mia Gindis, Alex Longley
click here to read this article at Rigzone.com
*this article was written by Roseland Oil & Gas

Oil rose on the prospect of a de-escalation in the trade war between the world’s two largest economies and a stall in nuclear talks between the US and Iran.

West Texas Intermediate futures added 1.9% to settle near $62.50 a barrel, the third gain in the four past sessions, after China signaled openness to trade negotiations with the Trump administration. Pre-conditions for the talks would include a more consistent US position and a willingness to address China’s concerns around American sanctions and Taiwan, according to a person familiar with the Chinese government’s thinking.

Elsewhere, Iran said it won’t be drawn into negotiations with the US over its ability to enrich uranium, reducing the potential of looser restrictions on Iranian crude. The US also sanctioned another China-based independent “teapot” refinery for its role in purchasing Tehran’s crude, and Treasury Secretary Scott Bessent said the US would ramp up pressure on Iran.

Crude has recovered from a sharp drop to near the lowest in four years brought about by an onslaught of tariffs and counter-levies between the US and its biggest trading partners. Washington on Tuesday started a probe into the need for import taxes on critical minerals, while trade differences with the European Union persist as White House officials said the bulk of the US tariffs imposed on the bloc won’t be removed.

Meanwhile, Iraq plans to cut its oil exports this month as it faces growing pressure to adhere to its OPEC+ production target. The country aims to reduce shipments by 70,000 barrels a day, an official with knowledge of the matter said.

In another support for prices, US government data released Wednesday showed inventory levels at Cushing, Oklahoma — the delivery point for West Texas Intermediate — fell by roughly 650,000 barrels to the lowest since 2008 for this time of the year. Gasoline reserves also dropped.

Oil Prices:

• WTI for May delivery climbed 1.9% to $62.47 a barrel in New York.
• Brent for June settlement rose 1.8% to $65.85 a barrel.

by Bloomberg | Mia Gindis, Alex Longley
click here to read this article at Rigzone.com
*this article was written by Roseland Oil & Gas