Oil Buoyed by Production Cuts Even as Glut Looms Over Market - Bloomberg:
Oil edged lower for the week after paring losses following the dramatic collapse on Monday that saw prices in New York plunge below zero for the first time in history.
West Texas Intermediate for June delivery rose 2.7% Friday, closing the curtain on a tumultuous week of wild price swings. U.S. operators have started to shut old wells and halt new drilling, actions that could reduce output by 20%. Russia’s seaborne exports from the Baltic will fall to a 10-year low in May, while Kuwait and Algeria said they are reducing production earlier than required under the OPEC+ deal.
“The production cuts are helping sentiment,” Andrew Lebow, senior partner at Commodity Research Group said. “We have a long way to go to balance the market. Traders are still very concerned about the storage situation.”
Oil exploration across the U.S. fell the most in 14 years with drillers idling 60 rigs, according to data from Baker Hughes Co. on Friday. This marks the sixth straight week of decreased activity levels, halting almost half of American exploration.
Oil edged lower for the week after paring losses following the dramatic collapse on Monday that saw prices in New York plunge below zero for the first time in history.
West Texas Intermediate for June delivery rose 2.7% Friday, closing the curtain on a tumultuous week of wild price swings. U.S. operators have started to shut old wells and halt new drilling, actions that could reduce output by 20%. Russia’s seaborne exports from the Baltic will fall to a 10-year low in May, while Kuwait and Algeria said they are reducing production earlier than required under the OPEC+ deal.
“The production cuts are helping sentiment,” Andrew Lebow, senior partner at Commodity Research Group said. “We have a long way to go to balance the market. Traders are still very concerned about the storage situation.”
Oil exploration across the U.S. fell the most in 14 years with drillers idling 60 rigs, according to data from Baker Hughes Co. on Friday. This marks the sixth straight week of decreased activity levels, halting almost half of American exploration.
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