U.S. crude oil recovers losses after surprise stockpile decline
Release time：2024-05-17 13:25viewed：times
From CNBC by Spencer Kimball
Crude oil futures rose Wednesday, recovering losses from earlier in the session as U.S. crude inventories fell.
Oil prices found support after U.S. commercial crude stockpiles declined by 1.4 million barrels in the first week of May, according to official data from the Energy Information Administration. The decline was a surprise compared to industry data that indicated a 509,000 barrel buildup.
Prices have come under pressure as of late on rising inventories with U.S. stockpiles surging in the last week of April.
“Oil market indicators have turned softer in recent weeks, and prices have declined from recent peaks,” Morgan Stanley analysts said in a research note. “The oil market is not tight now, but we see seasonal strength ahead in coming months.”
Still, the outlook for summer oil demand looks robust and OPEC+ will likely extend its production cuts until the end of the year, according to Morgan Stanley. This should support a 2 million barrel per day deficit in the third quarter and Brent prices at $90 over the summer.
OPEC and allies, including Russia, will meet on June 1 to discuss its production policy. Russian Deputy Prime Minister Alexander Novak said Tuesday that there is currently no discussion within OPEC+ of increasing oil output.
In the Middle East, CIA Director William Burns is due in Israel to discuss the latest Gaza cease-fire negotiations in Cairo, a source familiar with the matter told NBC News.
