OPEC Raises 2017 World Demand Growth Forecast

The U.S. Energy Information Administration said in its weekly report that crude oil inventories fell by 2.166 million barrels in the week ended April 7.

That effort has pushed oil prices above $50 a barrel in recent months, breathing life into USA oil patches like the Permian Basin.

Opec is considering whether to extend the supply cut deal beyond June and most members, including Saudi Arabia and Kuwait, are leaning towards this if all producers, including non-Opec also agree, Opec sources told Reuters last month.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for June delivery turned lower and traded up 14 cents, or 0.25%, to $56.01 by 10:41AM ET (14:41GMT), compared to $56.25 before the release.

Wednesday's US data followed more bullish news from OPEC nations that they had cut March oil output beyond the measures they had promised.

According to state media in Russian Federation, the country's oil minister has upped the ante on how much the country will cut out of its production levels through June. But the oversupply returned by the fourth quarter, when oil producers made 1.1 million barrels a day more than global demand.

Demand for oil from OPEC is seen growing by 600,000 bpd from 2016, to 32.2 million barrels daily.

More news: Oil falls after failed N. Korean missile test, US rig count gains

After trending higher in recent sessions, the price of crude oil gave back some ground over the course of the trading day on Wednesday.

In last month's OPEC report Saudi Arabia had posted numbers showing it raised output above 10m bpd in a move that briefly unnerved markets, before the kingdom issued a rare statement to explain the output increase was aimed at replenishing domestic inventories, rather than an attempt to increase exports.

"Positive momentum continued in the country's private sector as suggested by Stanbic IBTC Bank Nigeria PMI", OPEC said in its monthly report.

At the same time, EIA estimates that U.S. crude oil refinery inputs averaged 16.7 million barrels per day during the week ending April 7, or 268,000 barrels per day more than the previous week's average.

For 2017, the IEA said it expects non-OPEC supply to rise by 485,000 bpd, above its previous estimate of 400,000 bpd, led by increases in USA production growth.

However, sentiment brightened on Thursday morning when the International Energy Agency in its monthly report said global oil supply fell in March. Increased U.S. imports of heavy Canadian crude oils are replacing some imported Mexican crude oils of similar quality.

And in the United States, both production and inventories are surging.

  • Rita Burton