Oil prices came early on Wednesday, backed by a renewed commitment from OPEC and its de facto leader and largest producer Saudi Arabia to cut deeper than pledged and do what is needed to balance the market.
at 8:00 pm EST Wednesday, WTI Crude went up 0.77 percent at $ 53.51, while Brent Crude was up 0.72 percent at $ 62.87.
At the beginning of Wednesday's trade, oil prices were also backed by Tuesday's report from the American Petroleum Institute (API) which showed a small crude oil inventory of 998,000 barrels for the week ending February 8, compared to analysts' expectations predicting a build in crude oil inventories for a tune of 2,300 million barrels.
Last week, API reported a surprisingly crude construction of 2,51
The EIA is set to constitute the weekly inventory report on Wednesday, while in its short-term energy outlook (STEO) in February, the EIA said on Tuesday that "after two consecutive months of price decline, crude oil prices increased during January and February as global oil supplies fell relatively quickly. "
The production cuts from OPEC and its non-OPEC allies, the Saudi over-compliance with the cuts and the promise to cut even deeper next month, the unplanned error in Libya's Sharara oil field, and the reduction in Albert's production tightens global oil supply under to EIA.
The latest STEO expects total global petroleum inventories to fall by 1.3 million bpd in February, the biggest downturn since November 2017. The EIA, however, noted that US production would be tackling oil price gains.
"Despite the forecast for global oil investment, in February and lower forecast OPEC crude oil pro recovery in 2019, compared with January STEO, EIA forecasts that US crude oil production growth will counteract the decline in OPEC production through the forecast." 19659002] By Tsvetana Paraskova for Oilprice.com
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