Oil Investor T. Boone Pickens believes the price of oil will rise to a range of $55 to $60 a barrel by the end of the year, he said in an interview with Reuters on Monday.
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US crude oil settled up on Tuesday on speculation of demand from the planned restart of the country’s main gasoline pipeline, before being joined by Brent in a post-settlement rally on data showing a surprise USA inventory drawdown.
“We are close to an agreement between Opec and non-Opec countries to stabilize the market”, Maduro said, according to Petroleos de Venezuela.
USA gasoline futures rose 2 per cent after data showed stocks of the motor fuel fell 3.2 million barrels nationwide, compared with analysts’ expectations for a 567,000-barrel drop.
Brent crude futures were up 65 cents at $46.53 a barrel, while the US West Texas Intermediate (WTI) crude futures increased 85 cents at $44.90 a barrel, Reuters reported. JODI compiles data supplied from oil-producing members of global organizations including the International Energy Agency and OPEC.
Algeria’s Energy Minister Noureddine Bouterfa said on September 20 he was “optimistic” participants would reach consensus on how to prop up the oil market.
Major crude producer states are due to meet in Algeria next week to discuss the global supply crisis and overproduction that has hammered prices for two years.
While the draws have put a bullish face of sorts on oil, they also contrast with surging production from Opec and other major producers such as Russian Federation, causing a swing in crude prices lately. Both crude benchmarks are extending moderate gains on Tuesday.
Oil prices rose in Asia today as traders awaited the release of USA energy stockpiles data and a USA central bank decision on interest rates.
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Tuesday’s API report will be followed by the EIA’s (U.S. Energy Information Administration) weekly crude oil inventory report for the week ending September 16, 2016, on September 21, 2016, at 10:30 AM EST. Inventories at Cushing, the delivery point for WTI, probably rose by 100,000 barrels. Crude oil could see further support if the Fed statement is hawkish enough to weaken the U.S. Dollar. OPEC members are close to a deal, according to Venezuelan President Nicolas Maduro, while the group’s secretary general said an extraordinary meeting is possible if ministers reach consensus.
