Oil Prices Edge Higher From OPEC Boost

U.S. crude oil production reached 9.24 MMbpd, according to the latest Energy Information Administration data, making it the world's third-largest producer after Russian Federation and Saudi Arabia. Oilgram Price Report also brings a vast array of Platts worldwide prices for crude and products, netback tables, and market critical data.

But Barkindo said at a conference in Abu Dhabi that the cartel and other top nonmember producers are committed to keeping global crude inventories below the five-year average. According to Oil and Gas Investor's article headlined Oil Prices Edge Higher From OPEC Boost, Brent crude futures were up 27 cents at $55.16 a barrel (bbl) at 6:06 a.m. CT (11:06 GMT), while West Texas Intermediate crude was up 20 cents at $52.61.

Oil producers would need to extend the historic agreement to curb global oversupply through and until the end of 2017 for oil prices to surge, Citi analysts warned, amid concerns Russian Federation is lagging behind on its pledged production cuts. John Saucer, vice president of research and analytics at Mobius Risk Group in Houston, said the market was not jittery, noting low volatility and weak oil prices, which he said doesn't "really signal a market that's too concerned about geopolitical hotspots".

OPEC and non-OPEC producers agreed in December 2016 to cut supplies for six months, helping lift oil prices to about $55 a barrel after a two-year slump.

Oil prices are on pace for their biggest daily percentage decline since early March, and USA crude oil production is expected to rise in both 2017 and 2018.

The chart below illustrates crude oil price movement amid a reduction in commercial US crude stocks.

Oil prices regained some ground on Thursday after steep losses the previous day, with a slight drop in USA crude inventories stoking the hope that a global supply overhang might slowly retreat.

Overall, global fuel markets remain bloated, and Saudi Arabian Energy Minister Khalid al-Falih was quoted on Thursday in an interview with the Saudi-owned al-Hayat newspaper that supplies remained elevated in part because traders were selling supplies out of tanker storage.

The API reported surprisingly that gasoline inventories increased, while crude oil stocks fell by less than expected, said Sukrit Vijayakar, director of energy consultancy Trifecta.

"The rebalancing in USA crude stocks may have got underway, but concerns about further gasoline builds are rife even as the US summer driving season shifts up a gear", said Stephen Brennock, an analyst with PVM Oil Associates.