Oil at six-week high near $30<\/p>\n
Reuters, London<\/p>\n
U.S. oil prices climbed to a six-week high near US$30 a barrel on
\nMonday as traders reacted to a stubborn deficit in U.S.
\nstockpiles and a potential output cut from OPEC.<\/p>\n
By London midday, U.S. crude futures were up 30 cents at
\n$29.86 a barrel -- their highest level since April 22. Benchmark
\nBrent crude gained 28 cents to $26.60 a barrel, just 50 cents
\naway from a two-month peak.<\/p>\n
Oil prices have rallied more than four percent since the
\nmiddle of last week, when U.S. government data showed crude oil
\nstockpiles were stuck 12 percent below last year's levels while
\ngasoline tanks fell to a six percent deficit.<\/p>\n
Coming in the week leading up to the start of the summer
\ndriving season, when U.S. demand for motor fuel peaks, dealers
\nfeared a potential price spike.<\/p>\n
\"With global inventory still at extremely low levels and
\nparticular concern over low product and crude oil inventory in
\nthe U.S., there is little obvious sign of any significant
\nweakness,\" said Barclays Capital analyst Kevin Norrish in a daily
\nreport.<\/p>\n
The U.S. Energy Information Administration said implied
\ngasoline demand in the week to May 23 climbed to 9.3 million
\nbarrels per day (bpd), 600,000 bpd higher than a year ago.<\/p>\n
The big stock deficit has been accompanied by signs that the
\nOrganization of the Petroleum Exporting Countries could be
\npreparing to announce an output cut at a meeting next week,
\ndespite the fact that prices remain above its $25 target.<\/p>\n
\"Paradoxically the price strength of the past couple of days
\nmakes a production cut...less likely,\" Norrish said. \"If OPEC
\ndoes cut production it will be reacting to perceived weakness in
\nmarket fundamentals later on this year.\"<\/p>\n
Venezuelan Oil Minister Rafael Ramirez said last week that the
\ncartel might cut its ceiling by up to one million bpd at the June
\n11 meeting, but any decision hinges on the extent and speed of
\nrecovery of Iraq's battered oil industry.<\/p>\n
Iraqi officials are targeting output of some 1.5 million bpd
\nby mid-June, about half its pre-war level.<\/p>\n
Baghdad is expected to sell later this week some eight million
\nbarrels of crude oil stored in tanks on the Turkish Mediterranean
\ncoast, but the timing of sustained supplies as yet remains
\nunclear.<\/p>\n
The head of the International Energy Agency, Claude Mandil,
\nsaid last week that a production cut was unwarranted due to
\nIraq's slow recovery and thin stockpiles.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/oil-at-six-week-high-near-30-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}