Data showing slowed U.S. production and slightly higher demand sees oil prices climb
Prices for West Texas Intermediate (WTI) and Brent crude were both up on news that U.S. oil production is continuing to slow. Light, sweet crude for May delivery settled up $3.10, or 5.8%, to $56.39 per barrel on NYMEX, while Brent gained $1.89, or 3.2%, to $60.32 per barrel.
Source: Bloomberg WTI price chart
U.S. production slowed down 2% from the prior week, reports The Wall Street Journal, sparking one of the biggest one-day rallies for U.S. oil prices in two months. Production declines also helped lower storage additions, which rose 1.3 MMBO in the week ended April 10 – the least of the year.
These factors are reducing fears that the country is running out of storage space for oil, a fear that played a big role in falling oil prices, said Greg Sharenow, a portfolio manager at Pacific Investment Management Co. “That’s the biggest driver of what’s going on here,” he said. “The market has become more balanced.”
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