Bullish Oil bets gain amid OPEC output cut
Zanganeh stressed that most countries want OPEC's decision to be extended.
Reports from Reuters said that as of Thursday last week, brent Crude futures settled up 3 cents at $55.89 a barrel while U.S. West Texas Intermediate crude futures rose 7 cents a barrel to $53.18.
Crude oil prices were pulling close to even in early trading Monday, following weakness overnight sparked by lingering US energy sector gains.
Oil futures fell during the trading session, touching their lowest in 11 days as the US government reported that shale oil output in May was expected to post the biggest monthly increase in more than two years. Output from the Permian play, the country's largest shale region, was expected to reach a record 2.36 million bpd.
Brent for June settlement dropped 45 cents, or 0.8 percent, to $55.44 a barrel on the London-based ICE Futures Europe exchange. Their intraday low was $52.10, also the weakest since April 7.
Oil prices fell on Tuesday, then slid more in post-settlement trade after an industry group reported that USA crude stockpiles fell less than expected in the latest week while gasoline stockpiles grew unseasonably.
Official U.S. oil data is due to be published on Wednesday by the Energy Information Administration (EIA).
The anonymous sources said that Saudi Arabia, Iraq, and Kuwait would support an extension of the cartel's existing 1.2-million-barrel per day production cut during the summit in Vienna next month.
Despite many nations pumping full out and numbers that suggest the supply and demand market is far from balanced, Michael Cohen, head of energy commodities research at Barclays, told Bloomberg television that "we see further upside" in prices "during this quarter".
"In one corner we have high output compliance, seemingly rising demand (apparently) and strong Chinese economic data but, in the other corner, we have the 1 million tonne elephant in the room and that is USA production and exports".
This week's draw in crude oil inventories is the seventh draw in the last sixteen weeks, using API data, with the API still reporting an overall hefty build over the previous 15 weeks of roughly 37.1 million barrels.
Baker Hughes BHI, +0.47% data Thursday showed that the USA oil rig count rose for the 13th straight week in the week of April 13.
The Organization of Petroleum Exporting Countries said in a report a day earlier that inventories shrank in developed nations during the first quarter, while forecasting that rivals in the USA shale industry will boost output. All comments are subject to editorial review.