Oil Prices Slip To $71.43 Amidst OPEC’s Supply Cuts

Related stories

Kenya Plans to Launch Crude Oil Exports in 2026

Kenya hopes it will begin commercial crude oil production...

Maryam Abacha Drops Jabs At Gen Abdulsalami, Says Billions Stolen After Abacha’s Death

By Abiola Olawale Maryam Sani Abacha, widow of late Nigerian...

Tinubu: Presidency Replies Peter Obi, Says He Is Blind To Realities

By Abiola Olawale The Presidency has accused Peter Obi, the...

How Boko Haram Attacked Ex-COAS Buratai’s Convoy, Escapes Death In Borno — Reveals Ndume

By Kolawole Ojebisi The lawmaker representing Borno South in the...

Gambaryan Quits Binance After Brush With Nigerian Government

By Kolawole Ojebisi Months after regaining his freedom from the...

Oil markets fell on Thursday despite a surprise decline in U.S. inventories, but the price drops were tempered by a smaller-than-expected reduction in gasoline stocks and ongoing OPEC-led supply cuts.

Brent crude futures were at 71.43 dollars a barrel at 0700 GMT, down 19 cents or 0.3 per cent from their last close and further away from Wednesday’s five-month high of 72.27 dollars a barrel.

U.S. West Texas Intermediate (WTI) crude futures were at 63.62 dollars per barrel, down 14 cents or 0.2 per cent.

Both contracts had traded slightly higher earlier in the day.

U.S. crude inventories fell by 1.4 million barrels in the week to April 12 compared with analyst expectations for an increase of 1.7 million barrels, Department of Energy (DoE) data showed on Wednesday.

“The unexpected drawdown in U.S. commercial crude oil stocks was balanced by lower-than-expected withdrawals in the country’s gasoline and distillate inventories,” said Abhishek Kumar, Head of Analytics at Interfax Energy in London.

Gasoline stocks fell by 1.2 million barrels, less than analyst expectations in a Reuters’ poll for a 2.1 million-barrel drop.

Distillate stockpiles, which include diesel and heating oil, fell by 362,000 barrels, also not as much as forecasts for 846,000-barrel drawdown, the EIA data showed.

Prices have been supported this year by an agreement reached by OPEC and its allies, including Russia, to limit their oil output by 1.2 million barrels per day.

Global supply has also been tightened further by U.S. sanctions on OPEC members Venezuela and Iran.

Iran’s crude exports have dropped in April to their lowest daily level this year, tanker data showed and industry sources said, suggesting a drawdown in buyer interest ahead of expected further pressure from Washington.

Growing U.S. oil production and concerns over the U.S.-China trade dispute are keeping prices in check.

“A persistent rise in U.S. oil output, together with lingering demand-side concerns emerging from the U.S.-China trade dispute, is limiting price gains,” Kumar said.

U.S. crude oil output from seven major shale formations was expected to rise by about 80,000 bpd in May to a record 8.46 million bpd, the U.S. Energy Information Administration said in its monthly report on Monday.

Surging U.S. production has filled some of the gap in supplies, although not all of the lost production can be immediately replaced by U.S. shale oil due to refinery configurations. (Reuters/NAN)

'Dotun Akintomide
'Dotun Akintomide
'Dotun Akintomide's journalism works intersect business, environment, politics and developmental issues. Among a number of local and international publications, his work has appeared in the New York Times. He's a winner of the National Youth Service Corps (NYSC) Award. Currently, the Online Editor at The New Diplomat, Akintomide has produced reports that uniquely spoke to Nigeria's experience on Climate Change issues. When Akintomide is not writing, volunteering or working on a media project, you can find him seeing beautiful sites like the sandy beaches that bedecked the Lagos coastline.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

[tds_leads input_placeholder="Your email address" btn_horiz_align="content-horiz-center" pp_msg="SSd2ZSUyMHJlYWQlMjBhbmQlMjBhY2NlcHQlMjB0aGUlMjAlM0NhJTIwaHJlZiUzRCUyMiUyMyUyMiUzRVByaXZhY3klMjBQb2xpY3klM0MlMkZhJTNFLg==" pp_checkbox="yes" tdc_css="eyJhbGwiOnsibWFyZ2luLXRvcCI6IjMwIiwibWFyZ2luLWJvdHRvbSI6IjQwIiwiZGlzcGxheSI6IiJ9LCJwb3J0cmFpdCI6eyJtYXJnaW4tdG9wIjoiMTUiLCJtYXJnaW4tYm90dG9tIjoiMjUiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3NjgsImxhbmRzY2FwZSI6eyJtYXJnaW4tdG9wIjoiMjAiLCJtYXJnaW4tYm90dG9tIjoiMzAiLCJkaXNwbGF5IjoiIn0sImxhbmRzY2FwZV9tYXhfd2lkdGgiOjExNDAsImxhbmRzY2FwZV9taW5fd2lkdGgiOjEwMTksInBob25lIjp7Im1hcmdpbi10b3AiOiIyMCIsImRpc3BsYXkiOiIifSwicGhvbmVfbWF4X3dpZHRoIjo3Njd9" display="column" gap="eyJhbGwiOiIyMCIsInBvcnRyYWl0IjoiMTAiLCJsYW5kc2NhcGUiOiIxNSJ9" f_msg_font_family="downtown-sans-serif-font_global" f_input_font_family="downtown-sans-serif-font_global" f_btn_font_family="downtown-sans-serif-font_global" f_pp_font_family="downtown-serif-font_global" f_pp_font_size="eyJhbGwiOiIxNSIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_weight="700" f_btn_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTEifQ==" f_btn_font_transform="uppercase" btn_text="Unlock All" btn_bg="#000000" btn_padd="eyJhbGwiOiIxOCIsImxhbmRzY2FwZSI6IjE0IiwicG9ydHJhaXQiOiIxNCJ9" input_padd="eyJhbGwiOiIxNSIsImxhbmRzY2FwZSI6IjEyIiwicG9ydHJhaXQiOiIxMCJ9" pp_check_color_a="#000000" f_pp_font_weight="600" pp_check_square="#000000" msg_composer="" pp_check_color="rgba(0,0,0,0.56)" msg_succ_radius="0" msg_err_radius="0" input_border="1" f_unsub_font_family="downtown-sans-serif-font_global" f_msg_font_size="eyJhbGwiOiIxMyIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_size="eyJhbGwiOiIxNCIsInBvcnRyYWl0IjoiMTIifQ==" f_input_font_weight="500" f_msg_font_weight="500" f_unsub_font_weight="500"]

Latest stories

NDN
Latest News
Kenya Plans to Launch Crude Oil Exports in 2026Maryam Abacha Drops Jabs At Gen Abdulsalami, Says Billions Stolen After Abacha’s DeathTinubu: Presidency Replies Peter Obi, Says He Is Blind To RealitiesHow Boko Haram Attacked Ex-COAS Buratai's Convoy, Escapes Death In Borno --- Reveals NdumeGambaryan Quits Binance After Brush With Nigerian GovernmentDrama as Tinubu’s Aide, Aliyu Audu ResignsNigerians Have Behaved Badly For 'A Very Long Time', LP's Alex Otti Backs Tinubu's Fuel Subsidy RemovalOne Third Of Dangote Refinery Crude From US as Scarce Local Supplies Stall Refinery's Capacity, Says BloombergTinubu Running Govt. of 'Propaganda And Lies', Says Peter Obi2027: Ijaw Group Threatens To Prevent Election In Warri If...Sanwo-olu Breaks Silence On Alleged Rift With Tinubu, Calls President 'Father And Leader'Tinubu Tells Sanwo-Olu At Lagos Peace Meeting: "All is Forgiven"Pope Leo XIV Urges Faithful to Open Borders, Break Down Barriers, Embrace LoveJune 12: Tinubu To Address Senate, Reps Joint Session On Democracy DayNUT Speaks On Why FG's Planned Computer-based Examinations Won't Curb Malpractices
X whatsapp