Oil declined, as rising US crude stockpiles kept supplies at the highest level in more than eight decades.
Futures slid as much as 1.5 percent in New York, after closing little changed on Wednesday. Inventories expanded for a seventh week to 534.8 million barrels, according to a report from the Energy Information Administration (EIA). Imports and production dropped. Ecuador and Venezuela will support a cut to output at a meeting between major exporters in Doha next month, Ecuador’s Oil Minister Carlos Pareja said in a post on the ministry’s Twitter account.
Oil is up about 12 percent in March, after rebounding from a 12-year low last month amid speculation the global surplus will ease as US output declines. Saudi Arabia, Russia, Qatar and Venezuela agreed in February they would cap production at January levels if other producers followed suit to tackle the oversupply. They’ll meet again with other countries in Doha on April 17.
“The rally was overdone and the expectation is for a further moderation of prices,” Michael McCarthy, a chief strategist at CMC Markets in Sydney, said by phone. “While the outlook is more constructive for energy markets over the next 12 months, the current supply imbalance and the huge inventories mean it’s very hard to get too positive on oil prices anytime soon.”
West Texas Intermediate for May delivery fell as much as 58 cents to $37.74 a barrel on the New York Mercantile Exchange and was at $37.86 at 12:09 p.m. Hong Kong time. The contract gained 4 cents to $38.32 Wednesday. Total volume traded was about 8 percent below the 100-day average. Prices are 2.2 percent higher this quarter.
US stockpiles
Brent for May settlement, which expires Thursday, dropped as much as 45 cents, or 1.2 percent, to $38.81 a barrel on the London-based ICE Futures Europe exchange. Prices have gained 8.2 percent this month and 4.4 percent this quarter. The more actively traded June contract fell 36 cents to $39.69. The global benchmark crude is trading at a premium of $1.05 to WTI.
US crude inventories increased by 2.3 million barrels last week, the EIA said in a report on Wednesday. Supplies at Cushing, Oklahoma, the delivery point for WTI and the nation’s biggest oil-storage hub, dropped by 272,000 barrels. Production slid for a third week to 9.02 million barrels a day.
Production freeze and oil market news:
Oman will attend a meeting between oil exporters in Doha next month, according to a person familiar with policy who asked not to be identified.
Eni SpA started pumping crude through a pipeline in Nigeria after production was halted following an act of sabotage on March 24, according to the company.
Saudi Arabian Oil Co. is pressing ahead with an expansion of the Khurais oil field despite lower prices, the company’s CEO said. –Bloomberg News
It’s women’s month!
“Support women every day of the year!”
Invoke Article 33 of the ILO constitution
against the military junta in Myanmar to carry out the 2021 ILO Commission of Inquiry recommendations against serious violations of Forced Labour and Freedom of Association protocols.
Accept National Unity Government
(NUG) of Myanmar.
Reject Military!
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Monthly Observances:
Women’s Role in History Month
Weekly Observances:
Week 1: Environmental Week
Women’s Week
Week 3: Philippine Industry and Made-in-the-Philippines
Products Week
Last Week: Protection and Gender-Fair Treatment
of the Girl Child Week
Daily Observances:
March 8: Women’s Rights and
International Peace Day;
National Women’s Day
Mar 4— Employee Appreciation Day
Mar 15 — World Consumer Rights Day
Mar 18 — Global Recycling Day
Mar 21 — International Day for the Elimination of Racial Discrimination
Mar 23 — International Day for the Right to the Truth concerning Gross Human Rights Violations and for the Dignity of Victims
Mar 25 — International Day of Remembrance of the Victims of Slavery and the Transatlantic Slave Trade
Mar 27 — Earth Hour