Let’s start with oil real quick, because there are some notable headlines on Thursday morning.
Recall that things took a decisive turn for the worst on Wednesday after EIA data confirmed Tuesday’s bearish API print(s). Specifically, the crude draw came in lower than expected (just like API) and the unexpected gasoline build was even bigger than the API build tipped the day before. And of course crude production keeps hitting new highs. So ultimately, we got this:
That meant it was time for some serious (call it “big league”) jawboning which is exactly what we got from OPEC. Here’s a bullet point summary from Bloomberg:
Gulf Cooperation Council countries agreed to push for extension in meeting on Wednesday, Oman Oil Minister Mohammed Al Rumhy says in an interview in Abu Dhabi.
Iran, Venezuela show support for extension of cuts
GCC states are OPEC members Saudi Arabia, Kuwait, Qatar, U.A.E., in addition to Oman, Bahrain; All GCC member states were part of global agreement to cut output
“There is an initial agreement, but we didn’t communicate with all countries which is we might be obligated to extend to get to our target,” Saudi Arabia’s Oil Minister Khalid Al-Falih says at conference in Abu Dhabi.
First 3 months of cuts failed to bring inventories below 5- yr average
Reducing stockpiles is main target of producers in their deal to cut output
“Although there is a high level of commitment we haven’t reached our goal which is to reach the 5-year average”
Earlier, OPEC Faces Surprise Outcome After Oil Cuts: Higher Stockpiles
Initial numbers for March show improvement in non-OPEC compliance with cuts: Kuwait Oil Minister Issam Almarzooq
OPEC, non-OPEC producers in cuts agreement to meet May 25 to decide on next plan: Almarzooq
Global oil demand will grow 1.2-1.4m b/d this year: Qatar Energy Minister Mohammed Al Sada
Meeting global oil demand needs huge investments: Sada
Shale oil growth could slow market balancing: U.A.E. Energy Minister Suhail Al Mazrouei
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