Market News U.S. oil soars 7%, the biggest gain in nearly three weeks
U.S. oil soars 7%, the biggest gain in nearly three weeks
On April 12, U.S. oil rose more than 7% in late trading, closing near the 101 mark. OPEC warned that the possible Russian supply shortage may not be made up; at the same time, according to sources, Russian oil and natural gas condensate production Drop to 2020 lows, pushing oil prices sharply higher
2022-04-13
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On Tuesday (April 12), Brent oil futures rose $6.16, or 6.3%, to settle at $100.60 a barrel. According to the latest monthly report of the Organization of the Petroleum Exporting Countries, the supply forecast from outside OPEC has been lowered by 330,000 barrels per day, and Russia's daily output is now 530,000 barrels per day lower than previous estimates; and OPEC production in March increased by only 57,000 barrels per day Oil prices rose at 28.56 million bpd, below the 253,000 bpd increase allowed under the OPEC+ deal, as tight supplies pushed prices higher.
Earlier data released by the American Petroleum Institute (API) showed that gasoline inventories decreased by 5.053 million barrels in the week ended April 8, refined oil inventories decreased by 4.961 million barrels, crude oil inventories increased by 7.757 million barrels, and Cushing crude oil increased by 375,000 barrels . Oil prices were muted after the data was released.
Russia's oil and gas condensate output fell below 10 million bpd on Monday, the lowest level since July 2020, as sanctions and logistical restrictions hampered trade, according to two sources familiar with the data. "The risk remains that the oil market is still likely to suffer a significant shock if Russian energy is sanctioned," wrote Edward Moya, senior market analyst at OANDA.
OPEC said in its monthly report that global oil demand would rise by 3.67 million bpd in 2022, down 480,000 bpd from its previous forecast. Strong gains in commodity prices, combined with emerging supply chain bottlenecks and coronavirus-related logistical blockages, are fueling global inflation. Even so, global oil consumption is still expected to cross the 100 million bpd mark in the third quarter. The last time the world consumed more than 100 million barrels of oil a day was in 2019, according to OPEC.
OPEC also reported that OPEC output rose by just 57,000 bpd in March to 28.56 million bpd, below the 253,000 bpd allowed by the OPEC+ deal. Non-OPEC oil supply growth forecast for 2022 was cut by 300,000 bpd to 2.7 million bpd. OPEC cut its forecast for Russian oil production by 530,000 bpd but raised its forecast for U.S. shale oil production. OPEC expects U.S. shale oil supply to increase by 880,000 bpd in 2022, up from a forecast of 670,000 bpd last month, and said that while most U.S. oil companies remain focused on capital constraints, There is potential for further expansion.
According to the EIA's short-term energy outlook report, U.S. crude oil production is expected to increase by 820,000 barrels to 12,010,000 barrels per day in 2022, from 12,030,000 barrels per day previously expected. U.S. crude oil consumption in 2022 is 20.580 million barrels per day, compared to the previous forecast of 20.650 million barrels per day. Global crude oil demand growth in 2022 is expected to be 2.42 million barrels per day, compared with 3.13 million barrels per day previously. In 2022, WTI crude oil and Brent crude oil prices are expected to be $97.96/barrel and $103.37/barrel, respectively, compared with previous expectations of $101.17/barrel and $105.22/barrel, respectively.
Earlier data released by the American Petroleum Institute (API) showed that gasoline inventories decreased by 5.053 million barrels in the week ended April 8, refined oil inventories decreased by 4.961 million barrels, crude oil inventories increased by 7.757 million barrels, and Cushing crude oil increased by 375,000 barrels . Oil prices were muted after the data was released.
Russia's oil and gas condensate output fell below 10 million bpd on Monday, the lowest level since July 2020, as sanctions and logistical restrictions hampered trade, according to two sources familiar with the data. "The risk remains that the oil market is still likely to suffer a significant shock if Russian energy is sanctioned," wrote Edward Moya, senior market analyst at OANDA.
OPEC said in its monthly report that global oil demand would rise by 3.67 million bpd in 2022, down 480,000 bpd from its previous forecast. Strong gains in commodity prices, combined with emerging supply chain bottlenecks and coronavirus-related logistical blockages, are fueling global inflation. Even so, global oil consumption is still expected to cross the 100 million bpd mark in the third quarter. The last time the world consumed more than 100 million barrels of oil a day was in 2019, according to OPEC.
OPEC also reported that OPEC output rose by just 57,000 bpd in March to 28.56 million bpd, below the 253,000 bpd allowed by the OPEC+ deal. Non-OPEC oil supply growth forecast for 2022 was cut by 300,000 bpd to 2.7 million bpd. OPEC cut its forecast for Russian oil production by 530,000 bpd but raised its forecast for U.S. shale oil production. OPEC expects U.S. shale oil supply to increase by 880,000 bpd in 2022, up from a forecast of 670,000 bpd last month, and said that while most U.S. oil companies remain focused on capital constraints, There is potential for further expansion.
According to the EIA's short-term energy outlook report, U.S. crude oil production is expected to increase by 820,000 barrels to 12,010,000 barrels per day in 2022, from 12,030,000 barrels per day previously expected. U.S. crude oil consumption in 2022 is 20.580 million barrels per day, compared to the previous forecast of 20.650 million barrels per day. Global crude oil demand growth in 2022 is expected to be 2.42 million barrels per day, compared with 3.13 million barrels per day previously. In 2022, WTI crude oil and Brent crude oil prices are expected to be $97.96/barrel and $103.37/barrel, respectively, compared with previous expectations of $101.17/barrel and $105.22/barrel, respectively.
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