Oil price continues to recover from recent declineNews // April 6, 2017
Commerzbank Research says the oil price is continuing the recovery begun a week ago.
Brent gained by 2 per cent and WTI by 1.6 per cent on 4 April and rose further on 5 April to reach a four-week high of US$54.7 per barrel – and the same applies to WTI at US$51.5 per barrel.
The price rise was triggered by reports that oil production in the Buzzard oil field in the North Sea had been suspended temporarily by a technical problem. 180,000 barrels of Forties crude oil are produced per day at the Buzzard oil field – this is the most important oil type in the Brent basket.
This outage more than offsets the increase in oil production in Libya following the resumption of production at the Sharara oil field.
"What is more, an outage at an oil sand production facility in Canada means that over 350,000 barrels per day less crude oil will apparently be available throughout April," said Commerzbank.
As the oil analytical firm Vortexa reports, worldwide oil shipments in oil tankers are supposed to have plunged by 17 per cent since the beginning of January, which points to a tightening of oil supply.
The inventory data published yesterday by the American Petroleum Institute point in much the same direction: they show that US crude oil stocks decreased by 1.8 million barrels last week. Gasoline stocks declined by 2.6 million barrels, while distillate stocks fell by 2.0 million barrels. In all three cases, the inventory reduction was more pronounced than had been anticipated.