Oil Rebounds as Deeper Output Cuts Seen Easing Storage Pressure - Bloomberg:
Oil firmed in Asia as additional output cuts announced by Saudi Arabia and others were seen easing some of the pressure on storage sites that are nearing capacity.
Futures in New York rose 2.1%, erasing most of Monday’s drop. Saudi Arabia announced a surprise move to slash its output by another 1 million barrels a day on top of what it already agreed with OPEC allies, while the United Arab Emirates and Kuwait also announced additional cuts for June.
While the extra curbs would not be enough to re-balance the market, they would at least relieve some of the pressure on bulging storage infrastructure, said Paola Rodriguez Masiu, an oil markets analyst at Rystad Energy.
“We will now probably avoid global storage tank tops if demand ramps up as expected and new lock-down measures are not imposed,” she said.
Oil firmed in Asia as additional output cuts announced by Saudi Arabia and others were seen easing some of the pressure on storage sites that are nearing capacity.
Futures in New York rose 2.1%, erasing most of Monday’s drop. Saudi Arabia announced a surprise move to slash its output by another 1 million barrels a day on top of what it already agreed with OPEC allies, while the United Arab Emirates and Kuwait also announced additional cuts for June.
While the extra curbs would not be enough to re-balance the market, they would at least relieve some of the pressure on bulging storage infrastructure, said Paola Rodriguez Masiu, an oil markets analyst at Rystad Energy.
“We will now probably avoid global storage tank tops if demand ramps up as expected and new lock-down measures are not imposed,” she said.
No comments:
Post a Comment