Oil Rises Amid Shrinking U.S. Surplus as OPEC Prepares to Gather

Futures in New York rose 2.9 percent on Wednesday. An Energy Information Administration report showed shrinking American petroleum surpluses and the first crude withdrawal from the largest U.S. storage complex in six weeks. The U.S. draw-downs underlined optimism that an OPEC-led effort to curb global supplies will be reinforced later this week when the cartel and allied producers gather in Saudi Arabia.

“We continue to see extremely strong compliance” by OPEC nations to self-imposed supply limits, said Nick Holmes, an analyst at Tortoise in Leawood, Kansas, which manages $16 billion in energy-related assets. “It’s a multitude of factors that are contributing to that tighter inventory picture. Globally, we are seeing strong crude demand.”

The EIA reported U.S. crude stockpiles dropped 1.07 million barrels last week, while supplies at the Cushing, Oklahoma, pipeline hub dropped by 1.12 million. Gasoline supplies fell 2.97 million barrels and distillate stocks slid 3.11 million barrels to the lowest level since November.
more at:  https://www.bloomberg.com/news/articles/2018-04-18/oil-holds-gains-above-66-on-report-u-s-crude-stockpiles-shrunk