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Saudi oil cuts deeper than promised: IEA | ABS-CBN

14 April 2019

The sun sets behind an oil pump outside Saint-Fiacre, near Paris, France March 28, 2019.

The oil market also followed global stock markets higher after positive corporate earnings results from JP Morgan.

"While no industry lasts forever, the age of oil is far from over", Bernstein said.

Earlier this week, the Energy Information Administration reported that US crude inventories rose to their highest level since November 2017.

The perception that analytical worries shift from one extreme to the other as frequently as crude prices rise and fall was not lost on Tamas Varga, senior analyst at PVM Oil Associates, who stated in a research note published Thursday that "There are so many uncertainties surrounding the oil market that it makes it virtually impossible to predict developments for the rest of the week let alone for months or a year ahead".

"Geopolitically infused rallies could shoot prices toward or even past the $80 per barrel mark for intermittent periods this summer", the Canadian bank said. It's not until the WTI Crude Oil market breaks out to the upside that this market will be able to go higher as well.

Bombing by a warplane occurred on Friday near the Mellitah oil and gas plant, jointly operated by Italy's ENI and Libyan state oil firm NOC, a Libyan National Army (LNA) military source and residents said. The producers are due to meet on June 25-26 to decide whether to extend the pact.

Oil prices also gained support from continued signs of supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its allies.

Bernstein said it expected oil demand to peak around 2030, but added that "we expect a long plateau rather than a sharp decline" in consumption after that.

At the last OPEC meeting in Vienna, the group's members agreed to slash output by 812,000 bpd, with Russian Federation and nine other non-OPEC allies committing to a cut of 383,000 bpd for the first six months of 2019.

On the demand side, Chinese data showed exports rebounded last month, driving US and euro zone bond yields to three-week highs and helping offset weaker imports and reports of another cut in German growth forecasts.

Saudi oil cuts deeper than promised: IEA | ABS-CBN