For the first time since May, U.S. oil started to open at most $50 per barrel, backed by strong and high fuel demand, but ongoing large supplies from producer club OPEC kept prices from growing further.
West Texas Intermediate fuel futures were at $50.25 per barrel, increased to 8 cents or by 20% from their last close. That left the first time U.S. fuel had hit at most $50 per barrel since May 25.
As the oil prices were trading up by 0.1 percent or up to 6 cents, at $52.78 per barrel, French bank BNP Paribas notes, “U.S. gasoline demand climbed to last year’s highs and U.S. inventories, notably on the East Coast, declined.”
The US commercial crude oil stocks have decreased by almost ten percent from their late-March results to 483.4 million barrels, and seasonally shifts they are now below 2016 outcomes.
Amid this, there were also indications that global oil markets continued sufficient supplied, going further price rises.
BNP said, “Crude oil prices face multiple headwinds as OPEC struggles (to cut excess supply).”
Oil production by the Organization of the Petroleum Exporting Countries (OPEC) has increased this month. A Reuters survey found that there is a growth by 90,000 barrels per day (bpd) to a 2017-high of 33 million bpd, headed by a further improvement in stocks from Libya, one of the countries excluded from a production-cutting settlement.
This appears notwithstanding a contract by OPEC and other raisers, including Russia, to lower result by 1.8 million bpd from January this year to March 2018.