(Bloomberg) -- Oil advanced a second day in Asia on early signs that demand is starting to recover while producers curb output to counter a global glut.Futures in New York rose as much as 6%, after surging 22% on Wednesday. U.S. gasoline stocks fell by 3.67 million barrels compared to an estimated build of 2.49 million, the U.S. Energy Information Administration said Wednesday. Weekly gasoline supplied, an indicator of demand, rose by 549,000 barrels a day, the most since May.The discount on crude for June delivery relative to July, a structure known as contango, tightened to as little as $3.28 a barrel on Wednesday, after blowing out to as wide as $7.69 Tuesday as major index funds ditched the front month.The EIA also reported a smaller-than-expected 8.99 million-barrel increase in national crude stockpiles and a 3.64 million-barrel build at Cushing, Oklahoma, the delivery point for futures.Prospects for an easing in the supply glut appear brighter as producers across the globe rein in their activity. Output in the shale-rich Permian Basin, and elsewhere in the U.S., will be cut by about 2 million barrels a day in May compared to March, Mercuria Chief Executive Officer Marco Dunand said in an interview.Russian oil companies will reduce production by about 19% from February levels, the nation’s Energy Minister Alexander Novak told the Interfax news agency. Nigeria, which has been struggling to sell its oil even at $10 a barrel, will in May and June ship the smallest volume of its key Qua Iboe crude grade since 2016.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
from Yahoo Finance https://ift.tt/2y0u1eh
No comments:
Write comments