U.S. Crude Stocks Plunge, Oil Rises 2%

U.S. Crude Stocks Plunge, Oil Rises 2%

U.S. Crude Stocks Plunge, Oil Rises 2%

However, crude stocks at Cushing, the delivery hub for US crude futures rose 1.6 million barrels to 46.7 million barrels, the highest since December 2017.

Oil and gas will continue to dominate the world energy scene for many decades and overall demand for energy will remain robust, he said.

Worldwide oil prices are posting their best start to a year amid output cuts by OPEC countries and a solid global demand.

When it comes to oil prices, EIA forecast Brent spot prices will average 61 US dollars per barrel in 2019 and 62 dollars per barrel in 2020, compared with an average of 71 dollars per barrel in 2018. That also compares with the US$62 average for the global benchmark this year.

International Brent crude prices were at $66.20 per barrel at 0525 GMT, after losing 19 cents, or 0.3 per cent from their last close.

Despite hitting their highest levels since mid-November this week, Brent futures ended the week 3.3 percent lower and WTI dropped 2.7 percent.

The exports from the largest oil producer within the Organisation of Petroleum Exporting Countries has decline from 1.361 million bpd in 2012 to 1.052 million bpd in 2015, and then to 949,000 bpd by 2017, to about 500,000 barrels a day by the end of previous year. South Korea's exports contracted at their steepest pace in almost three years.

India's diesel consumption, for example, is expected to rise to a record this year amid economic growth of around 7 percent.

Meanwhile, global oil supply dropped by 1.4 million b/d to 99.7 million b/d in January.

In February, the 11 OPEC members bound by the deal achieved 101 percent of pledged cuts, the survey found, up from 70 percent in January.

Also in Riyadh, OPEC Secretary General Mohammed Barkindo commented that managing world supply is hard when two members - Iran and Venezuela - are under sanction from the United States.

Further, the collapse in oil prices may have influenced 60 per cent of the survey respondents who advocated that OPEC should return to their 2014 strategy of fighting for market share, rather than the current plan of curtailing supply in pursuit of higher prices.

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