Thursday 21 March 2019

Oil Stays Above $60 on U.S. Stockpile Draw and Saudi Supply Drop - Bloomberg

Oil Stays Above $60 on U.S. Stockpile Draw and Saudi Supply Drop - Bloomberg:

Oil held above $60 a barrel after the biggest withdrawal of crude in American storage tanks since July raised speculation that global supplies are tightening. 



Futures for May in New York were little changed after the April contract reached the highest level this year before expiring on Wednesday. U.S. government data showed a 9.59 million-barrel decline in nationwide stockpiles, exceeding analysts’ expectations. Crude exports from the country were near a record high while imports from Saudi Arabia fell by more than half, and it stopped shipments from Venezuela altogether.

Crude broke above $60 a barrel for the first time since November as output reductions by the Organization of Petroleum Exporting Countries and its partners, as well as supply disruptions in Venezuela and Iran, countered growing U.S. shale production. Meanwhile, the Federal Reserve said interest rates could be on hold for “some time,” thawing investor concerns over weakening global growth that would dampen oil demand.

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