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Oil rises above $50 as OPEC cuts seen bringing stockpiles
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Loading...Oil rose above $50 a barrel on expectations OPEC will succeed in bringing down inventories as the summer driving season kicks off in the U.S.
Futures rose for a second session in New York after an OPEC-led deal to extend output limits through March was initially met with a selloff last week as deeper cuts or a plan for the rest of 2018 weren’t proposed. But Saudi Arabia’s Energy Minister Khalid Al-Falih said the strategy is working and stockpiles will drop faster in the third quarter. Many expect the driving season that’s starting with the Memorial Day holiday to help ease the glut.
U.S. inventories have dropped seven weeks in a row in a sign Al-Falih may be right, though they still remain above the five-year average. To speed up that decline, Saudi Arabia plans to reduce exports to the world’s biggest consumer.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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