William Watts of MarketWatch reports oil prices pulled back after industry data showed a large rise in U.S. crude stocks. Watts writes:
William Watts Oil futures fell Wednesday after industry data showed a large rise in U.S. crude inventories last week ahead of official government figures.
Meanwhile, OPEC+, made up of the Organization of the Petroleum Exporting Countries and its allies, including Russia, was weighing an extension of voluntary production cuts into the second quarter, Reuters reported, citing unnamed sources. OPEC+ agreed in November to voluntary cuts of 2.2 million barrels a day in the first quarter of 2024, with Saudi Arabia rolling over its voluntary cut of 1 million barrels a day. […]
“Since announcing the voluntary cuts at the end of November 2023, ICE Brent has traded soft amid demand concerns and have just recovered recently only to November levels” of $83 a barrel, they wrote. ”The demand prospects remain muted in the short-term due to the economic slowdown and the group may need to keep cuts in place to maintain market balance.”
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