"There's the anticipation that OPEC+ is going to agree to extend their current levels for another two months, and at the same time, the market anticipates that the reopening of economies around the world will increase demand and will get us in a position such that, by August, the oilmarket will be in balance," said Andy Lipow, president of consultants Lipow Oil Associates.
OIL edged higher toward US$39 a barrel as expectations U.S. crude stockpiles extended declines offset a decision by Saudi Arabia to cease extra voluntary production cuts by the end of this month.
Futures added 1% in New York after snapping a four-day rally on Monday. U.S. crude inventories probably fell for the fourth time in five weeks, according to a Bloomberg survey, while armed militants sought to derail Libya’s plan to pump more oil. Saudi Arabia said the additional supply cuts, which amounted to about 1.2 million barrels a day and included contributions from allies in the Persian Gulf, would only take effect in June as planned.
Win a prize this Mother's Day by subscribing to our annual plan now! T&C applies.
