Oil Stabilizes As OPEC Ponders Deeper Cuts

13 May 2017   Prices

Oil prices appear to have recovered from last week’s flash crash following a significant draw in U.S. inventories and bullish rumors surrounding the OPEC deal. (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) Friday, May 12, 2017 Oil prices showed some life this week after an encouraging drawdown in inventories in the U.S., sparking large gains on Wednesday. Crude stocks dropped by a sizable 5.3 million barrels last week, and importantly, there was not a corresponding uptick in gasoline inventories, confirming a significant reduction in storage. WTI and Brent jumped up from their six-month lows. OPEC ponders deeper cuts. We are roughly two weeks away from OPEC’s official meeting in Vienna, which is expected to result in a six-month extension of the production cuts. But now top OPEC officials are wondering if it will be enough. OPEC’s monthly report […]

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