Oil Prices Increase Ahead of OPEC+ Output Boost

Oil Prices Increase Ahead of OPEC+ Output Boost

Oil prices increased in the global commodity market on Thursday ahead of an output surge from the Organisation of Petroleum Exporting Countries and allied members (OPEC+) seeking to accelerate crude supply starting from May.

Several OPEC+ members want the group to approve another accelerated oil output increase for June at a meeting, according to Reuters sources. Brent crude futures rose 8 cents, or 0.12%, to $66.20 a barrel, while US West Texas Intermediate crude rose 9 cents, or 0.14%, to $62.36 a barrel.

Prices fell 2% during the previous trading session after reports that several OPEC+ members suggested the group would accelerate oil production increases for the second consecutive month in June, citing three sources familiar with OPEC+ talks.

“While yesterday’s risk-on move lifted most risk assets, oil lagged behind due to disagreements within OPEC+”, ING analysts wrote in their note.

Kazakhstan, which produces about 2% of global oil production and has repeatedly exceeded its quota over the past year, said it would prioritize national interests over OPEC+ interests when making decisions about production levels, Reuters reported on Wednesday.

Meanwhile, US commercial crude oil inventories increased by 0.1% during the week ending April 18, according to data released by the Energy Information Administration (EIA) late Wednesday. Inventories rose by around 200,000 barrels to 443.1 million barrels, against the market prediction of 700,000 barrels decrease.

Strategic petroleum reserves, which are excluded from commercial crude stocks, increased by 500,000 to 397.5 million barrels, the data revealed. Over the same period, gasoline inventories decreased by around 4.5 million barrels to 229.5 million barrels.

EIA data showed that US crude oil production decreased by 2,000 barrels per day (bpd) to about 13.46 million bpd during the week ending April 18. US crude oil imports fell by 412,000 bpd to approximately 5.59 million bpd, while exports decreased by 1.55 million bpd to around 3.55 million bpd over the same period.

In the Short-Term Energy Outlook (STEO) released on April 10, the EIA predicted that crude oil output in the country would reach an average of 13.5 million bpd in 2025. #Oil Prices Increase Ahead of OPEC+ Output Boost MTN Nigeria Net Loss Grows by 192% to N400 billion