The reduction by the UAE has helped boost OPEC compliance this month with its production-cutting deal to 95%, up from an initial February estimate of 94% and a record high, according to Reuters surveys.
Crude oil inventories rose by 867,000 barrels in the week ending March 24, compared with analysts' expectations for an increase of 1.4 million barrels, the EIA said.
Russia and Iran have pledged to continue efforts to rein in oil production and stabilize markets, the presidents of both countries said in a joint statement on March 28.
But crude was weighed down by a resurgence in U.S. shale oil production and the expectation that inventories would once again build, illustrating the global supply overhang that has depressed prices for three years.
Even with land prices shooting straight up, the Permian Basin still can make economic sense, says an RS Energy Group analyst.
The agreement has elevated the price of crude to more than $50/bbl, but it helped U.S. shale oil producers boost their output, hampering efforts to reduce global stockpiles, Reuters reported.
A joint committee of ministers from OPEC and non-OPEC oil producers has agreed to review whether a global pact to limit supplies should be extended by six months.
The controversial pipeline will fill a takeaway need as Canadian heavy oil production surges and Mexico’s output declines.
A crude oil spill in western North Dakota in December is now believed to be about three times bigger than originally estimated, pipeline owner True Cos. Inc. said March 24.
Unless OPEC extends the curbs beyond June or makes bigger cuts, traders say oil prices are at risk of falling further.
The government concluded that a buckle in the pipeline cracked and caused the spill due to ground movement on a slope of land over many years, mirroring Husky Energy Inc.'s earlier conclusion, Reuters reported.
Price of the NGL ‘barrel’ slinks to its lowest point since November.