Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Oil moves higher, hovers below $40 as doubts emerge over next step on OPEC cuts

share with twitter share with LinkedIn share with facebook
06/03/2020 | 04:04pm EDT
FILE PHOTO: A pump jack on a lease owned by Parsley Energy operates in the Permian Basin near Midland

By Jessica Resnick-Ault

Oil ended slightly higher on Wednesday but remained below the session's early highs above $40 a barrel, the highest since March, retreating as doubts emerged about the timing and scale of a potential extension to the pact between OPEC and its allies to cut crude supplies.

Oil prices were supported by a drawdown in U.S. crude inventories in the latest week, but came under pressure as U.S. refined product inventories surged on tepid demand. [EIA/S]

"As product demand remains subdued, gasoline inventories showed a solid build, while distillates showed a mammoth one - despite refinery runs being over 3.6 million barrels per day below year-ago levels," said Matt Smith, director of commodity research at ClipperData.

Saudi Arabia and Russia have a deal to extend oil output cuts by a month, but a policy meeting on Thursday rather than later in June is unlikely, sources said. Early in the session, oil fell when Bloomberg reported the Thursday meeting was in doubt.

"Prices were firm so far this week on the news that the meeting was earlier," said Olivier Jakob, oil analyst at Petromatrix. "The retracement today is definitely due to the latest headlines on OPEC."

Brent crude futures for August settled up 22 cents, or 0.6%, at $39.79 a barrel. The session high of $40.53 was the highest since March 6. West Texas Intermediate (WTI) crude for July rose 48 cents, to $37.29 a barrel.

Both benchmarks have surged in recent weeks, with Brent more than doubling after hitting a 21-year low below $16 in April, when U.S. crude turned negative.

The OPEC+ group, comprising the Organization of the Petroleum Exporting Countries and allies including Russia, is cutting output by 9.7 million barrels per day (bpd) in May and June, equal to about 10% of global output before the coronavirus crisis.

Talks have been focused on keeping the current level of cuts beyond June. But a one-month extension would be shorter than some sources have said was under consideration.

Oil also weakened on reports that Gulf OPEC producers are not discussing extensions to their deeper voluntary production cuts beyond June.

Pointing to demand recovery, the services sector in China, the world's second-biggest oil consumer, returned to growth last month, a survey showed.

(Additional reporting by Aaron Sheldrick and Alex Lawler; Editing by David Gregorio, Richard Chang and Tom Brown)

Stocks mentioned in the article
ChangeLast1st jan.
AT HOME GROUP INC. 2.76% 5.96 Delayed Quote.8.36%
JUST GROUP PLC 2.25% 49.06 Delayed Quote.-37.90%
LONDON BRENT OIL 0.16% 42.89 Delayed Quote.-35.88%
SAUDI ARABIAN OIL COMPANY 0.45% 33.45 End-of-day quote.-5.11%
THE GLOBAL LTD. -3.30% 205 End-of-day quote.-56.48%
US DOLLAR / RUSSIAN ROUBLE (USD/RUB) 0.24% 70.7785 Delayed Quote.14.30%
WILL GROUP, INC. -2.52% 618 End-of-day quote.-50.64%
WORLD CO., LTD. -5.40% 1420 End-of-day quote.-47.23%
WTI 0.20% 40.195 Delayed Quote.-35.40%
share with twitter share with LinkedIn share with facebook
Latest news "Economy & Forex"
12:16aNEWS HIGHLIGHTS : Top Financial Services News of the Day
07/12Business Survey Contraction
07/12BANK INDONESIA : Manufacturing Industry Contraction
07/12Vietnam first-half trade surplus $5.46 billion vs $1.72 billion surplus in first-half 2019 - customs
07/12'LET'S GET GOING' : UK tells businesses to prepare for Brexit crunch
07/12Asian shares extend rally, U.S. earnings to test optimism
07/12NEWS HIGHLIGHTS : Top Global Markets News of the Day
07/12NEWS HIGHLIGHTS : Top Company News of the Day
07/12Asian shares extend rally, U.S. earnings to test optimism
07/12Webinar - US-China Trade war impact on Asia supply chain tariff mitigation strategies
Latest news "Economy & Forex"