Oil prices rose on Thursday after OPEC sources said the group could extend its oil supply-reduction pact with non-members and might even apply deeper cuts if global crude inventories failed to drop to a targeted level.
The crude oil market is wondering why the Strategic Petroleum Reserve numbers remained unchanged even as the Department of Energy announced that it had already sold over 6.0 million barrels of oil to a private concern, and they announced another sale of 10 million more barrels of oil by the end of this month. We know there is mandatory reporting of inventory shifts by the oil companies but is the SPR on the same reporting schedule.
Crude oil dynamics are changing as rig counts rise, oil discoveries fall and OPEC compliance to production cuts are at an all-time high. Despite short-term worries about a U.S. glut, global oil inventories are on a path to a major tightening scenario and shale oil production alone will not change that.
The best OPEC compliance EVER! Phenomenal! Tax Cuts! Phenomenal! It is a phenomenal Friday! Not only is OPEC compliance of production cuts the best-ever per a report by the International Energy Agency, President Donald Trump is promising a phenomenal tax cut plan and that drove U.S. stocks to records and increased already increasing demand expectations for crude oil. We are setting the stage for some phenomenal moves for crude oil in a new era of phenomenal!
OPEC has delivered more than 90 % of pledged oil output curbs in January, according to figures the exporter group uses to monitor its supply, making a strong start to implementation of its first production cut in eight years.