Opec chief sees oil producers near to re-balancing market


The latest data which covers production up to 14th of April show that the USA production has reached 9.252 million barrels per day, which is the highest level of production since August 2015.

The latest American Petroleum Institute (API) data recorded a draw in inventories of 0.8mn barrels for the week ending April 7th and the third successive weekly draw although it was lower than the expected draw of 1.3mn barrels.

Earlier Wednesday, OPEC's Secretary-General Mohammad Barkindo said that the cartel and other major oil producers are moving closer to end the worlds's glut oil.

As of 4:30PM, EST on Tuesday, WTI was trading down.04% at $52.63, with Brent Crude trading down.049% at $55.09.

That could indicate fading strains from an oversupplied market, though US crude oil production continues its build beyond 9 million barrels per day, offsetting the decline in oil inventories to some extent.

Oil prices hit their lowest in 11 days on Tuesday on news that US shale oil output in May is expected to post the biggest monthly increase in more than two years, fuelling concerns that USA production growth is undermining efforts to cut oversupply.

OPEC and other producers such as Russian Federation agreed to cut output by almost 1.8 MMbbl/d in the first half of 2017 to drain a supply overhang that has persisted for nearly three years.

It also said the Asia group, includeing India, was anticipated to lead oil demand growth this year followed by China and the Organisation for Economic Co-operation and Development (OECD) Americas.

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Benchmark Brent crude futures were down 18 cents 55.71 at 0047 GMT.

But an investor shift out of equities and commodities and into perceived safe-havens such as U.S. Treasuries offset some of this boost.

Oil prices regained some ground on Thursday after steep losses the previous day, with a slight drop in USA crude inventories stoking hopes that a global supply overhang might slowly retreat.

At a press conference in the United Arab Emirates, Saudi Energy Minister Khalid al-Falih said that "there is consensus building but it's not done yet".

USA crude inventories, however, fell by 1.0 million barrels last week to 532.3 million barrels, said the EIA.

Gasoline stocks were up by 1.5 million barrels, compared with expectations in a Reuters poll for a 1.9 million-barrel drop.

China's March gasoline output rose 2.5 percent year-on-year to 11.2 million tons, the highest level since at least April 2014, China's National Bureau of Statistics said, adding to an Asian market that is already well supplied. "Unless the [EIA] data shows something drastically different, this report should cause a severe dent in the bullish case [for oil prices]", said Sukrit Vijayakar, director of energy consultancy Trifecta.