Wednesday, April 18, 2018

Oil Prices Rise Amid Lower US Stockpiles, Rising Global Tensions

Oil Prices Rise
International oil prices are posting steady increases due to higher energy consumption in the US, Saudi Arabia's continued commitment to production cuts and rising global political uncertainty.

Last week, US crude inventories slumped by one million bbl due to higher processing activity and elevated gasoline prices, supported by robust demand ahead of the summer holiday season. This according to a report from the American Petroleum Institute (API), which also found total US oil stockpiles have decreased to 428 million bbl.

"Oil prices are holding near three-year highs reached earlier in April for the time being, and with inventories back in line with normal levels, the supply glut of the last few years appears to be over," William O'Loughlin of Rivkin Securities in Australia said.

Brent oil futures rose to $72.07/bbl in early Wednesday trading in London, whilst US WTI oil was $67.01/bbl overnight — an increase of 0.7 percent from the previous trading session for both benchmarks.

Additionally, the Dutch bank ING upgraded its average global oil prices outlook for this entire year to $66.50 from $60.25/bbl for Brent, and to $62.50/bbl from $57.75/bbl for WTI.

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