"The fear of oversupply could easily turn to a fear of under-supply if inventories keep declining like they have been and demand continues to grow," says an investment analyst at Rivkin Securities. While the actual cuts aren't quite as high as the target, analysts say overall compliance has been strong. WTI Crude is at $54.02 and Brent Crude is at $60.77 this morning.
Oil consumption is now running faster than production causing the market to steadily whittle away at excess inventories. The re-balancing trend is well underway, and within the next six to nine months, the trend will be more accurately described as tightening. WTI Crude is UP at $53.93, and Brent Crude is UP at $60.56 this morning.
Oil prices have been hovering near their highest for the year in recent weeks, amid signs of a tightening market. OPEC and some non-OPEC producers, including Russia, have pledged to reduce their production by around 1.8 million barrels per day until the end of March 2018 to drain a global supply glut. WTI Crude is steady at $52.54 and Brent Crude is at $59.19 this morning.
BRENT CRUDE CRASHES $60 PER BBL BARREL!
Oil prices pressed higher Friday morning, with Brent crude topping the elusive $60-a-barrel mark for the first time in more than two years.
Saudi Crown Prince gives backing for an extension of oil production cuts beyond March 2018, sending a signal that Riyadh and Moscow are ready to prolong their collaboration to reduce oil supply and lift energy prices. Today, WTI Crude is UP at $52.28 and Brent is at $58.43.
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