Oil Wipes Out Two Days of Losses on Potential for OPEC-Led Cuts - Bloomberg:
Oil rose, wiping out two days of losses, as OPEC deliberations over a potential supply cut overshadowed an uptick in U.S. crude inventories.
Futures advanced as much as 4.4% in New York on Wednesday, the biggest jump in almost a month. Saudi Arabia and Russia debated whether an oil-production cut is warranted in response to the lethal viral outbreak that’s crimping fuel demand.
Meanwhile, prices barely reacted to an Energy Information Administration report that showed a bigger-than-expected rise in American crude inventories. The report also detailed the first withdrawal of gasoline supplies in 12 weeks, a bullish development.
“The draw in gasoline wasn’t expected so that’s contributing to the strength in the market,” said Nick Holmes, portfolio manager at Tortoise. “Though there hasn’t really been an improvement in the coronavirus, there’s a broader rebound in risk assets, and the OPEC meeting is giving us something to hold on to.”
Oil rose, wiping out two days of losses, as OPEC deliberations over a potential supply cut overshadowed an uptick in U.S. crude inventories.
Futures advanced as much as 4.4% in New York on Wednesday, the biggest jump in almost a month. Saudi Arabia and Russia debated whether an oil-production cut is warranted in response to the lethal viral outbreak that’s crimping fuel demand.
Meanwhile, prices barely reacted to an Energy Information Administration report that showed a bigger-than-expected rise in American crude inventories. The report also detailed the first withdrawal of gasoline supplies in 12 weeks, a bullish development.
“The draw in gasoline wasn’t expected so that’s contributing to the strength in the market,” said Nick Holmes, portfolio manager at Tortoise. “Though there hasn’t really been an improvement in the coronavirus, there’s a broader rebound in risk assets, and the OPEC meeting is giving us something to hold on to.”
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