- Oil ignores the bearish API inventory report released yesterday and hit five-month highs a few minutes before press time.
- OPEC’s output hit a four-year low in March. The Energy Information Administration is expected to show the US oil inventories dropped last week.
Oil benchmarks shrugged off the bearish US inventory report released yesterday and jumped to five-month highs in Asia.
Brent oil rose to $69.84 per barrel, the highest level since early November, and is currently changing hands at $69.81 per barrel, representing a 2.8 percent gain on the weekly opening price of $67.90.
Meanwhile, WTI is currently trading at $62.84 per barrel, having hit a four-month high of $62.89 soon before press time.
US crude oil inventories unexpectedly rose by 3 million barrels last week, the American Petroleum Institute said on Tuesday. Oil prices, however, have shrugged off the bearish inventory report, and continue to cheer the OPEC-led supply cuts.
The Cartel’s oil production in March 2019 fell to 30.4 million barrels per day (bpd) last month, down by 280,000 bpd compared to February and the lowest level since February 2015.
The drop in OPEC’s oil output to four-year low, coupled with the upbeat China PMIs (released this week) and improved risk appetite will likely keep oil benchmarks better bid during the day ahead.
The Energy Information Administration (EIA) data due later today is expected to show the US crude inventories dropped 100,000 barrels last week. A bigger drawdown could end up pushing WTI higher to $63.59 (resistance of the June 2018 low as per the weekly chart).
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