Investing.com - Financial Markets Worldwide
🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Oil rises after U.S. crude stocks drop, focus on OPEC+ meeting

Published 07/15/2020, 08:52 AM
Updated 07/15/2020, 09:00 AM
© Reuters.
LCO
-
CL
-

SEOUL, July 15 (Reuters) - Oil prices rose on Wednesday
after a sharp drop in U.S. crude inventories, with the market
waiting for more direction from a meeting later in the day on
the future level of production by OPEC and its allies.
Brent crude LCOc1 futures were up 10 cents, or 0.2%, at
$43 a barrel as of 0049 GMT, and U.S. West Texas Intermediate
(WTI) crude CLc1 futures rose 14 cents, or 0.4%, to $40.43 a
barrel.
In a sign of improving demand despite the coronavirus
pandemic, U.S. crude inventories fell by 8.3 million barrels in
the week to July 10, beating analysts' expectations for a
decline of 2.1 million barrels, according to data from industry
group the American Petroleum Institute. API/S
Official data from the U.S. Department of Energy's Energy
Information Administration (EIA) is due on Wednesday.
On supply, the market will be closely watching the Joint
Ministerial Monitoring Committee (JMMC) of the Organization of
the Petroleum Exporting Countries (OPEC) later on Wednesday.
Key members of OPEC and allies including Russia, a group
known as OPEC+, are set to decide whether to extend output cuts
of 9.7 million barrels per day (bpd) that end in July or ease
them to 7.7 million bpd.
"OPEC+ decision on production cut tapering will set the tone
for the oil market," ANZ Research said in a note.
In June, OPEC and its allies delivered compliance of 107%
with their agreed oil output cuts, an OPEC+ source said on
Tuesday. Meanwhile, OPEC said in its monthly report that global oil
demand would soar by a record 7 million bpd in 2021 as the
global economy recovers from the coronavirus pandemic although
it would stay below 2019 levels.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.