Both Brent and WTI crude futures have traded within a $5 per barrel price range since the start of the year. Benchmark Brent crude prices were down 0.36 per cent, or 20 cents, to $55.77 a barrel while West Texas Intermediate was trading down 0.45 per cent, or 24 cents, to $52.96. "And thank God, the oil price has increased".
The effort, which is expected to contribute to a rebalancing of oil markets and, as a result, push up the price of oil, has reached ~91% compliance on January volume, with a combined of ~1.6 mb/d taken offline from October volumes.
Although oil depended economies of OPEC and non-OPEC players seek a sustainable growth in prices, the market share war between big producers could stop these players from making further cuts.
Gasoline stocks rose 2.8 million barrels, well above expectations ahead of the summer driving season, while distillate stockpiles fell by 689,000 barrels, in line with forecasts, the EIA data showed.
The previous record was at roughly 512.1 million barrels for the week ended April 29, 2016.
Fawad Razaqzada, analyst at Forex, said the buying and selling pressure is finely balanced.
The first month estimates revealed that the compliance rate among the OPEC countries was around 90%.
"Crude oil output increased the most in Iraq, Angola and Libya, whiles production in Saudi Arabia, Nigeria and Venezuela showed the largest decline", OPEC said. The agreement included the possibility to extend the cuts by another six months.
Non-OPEC producers had delivered on more than half of their pledged production reductions, said the minister, Essam Al-Marzouk, who chairs a committee tasked with monitoring the agreement.
January 1 marked the official start of the deal agreed by OPEC and non-OPEC member countries such as Russian Federation in November a year ago to reduce output by nearly 1.8 million barrels per day to 32.5 million for the next six months.
US natural gas futures fell to a three-month low on Thursday for March delivery on the New York Mercantile Exchange, and ended down 2.80% to $2.843 per million British thermal units.
In 2017, assuming normal weather conditions, we expect demand to grow by 1.4 mb/d, an increase of 0.1 mb/d from the last report. Anthony Starkey is a manager of energy analysis for Platts Analytics, a forecasting and analytics unit of S&P Global Platts.
"The puny working gas withdrawal last week-only 114 [billion cubic feet] and below any consensus-simply sends traders firmly into the shoulder season trade", though that season of slack demand is still a few weeks away, Richard Hastings, macro strategist at Seaport Global Securities, told MarketWatch.