European refineries increased crude oil intake in June, but stocks of oil products, particularly diesel, slid, Euroilstock data showed on Tuesday.
The U.S. vaulting into the top ranks of exporters would have been unthinkable even a few years ago.
USA domestic production dipped 100,000 barrels per day last week, but the latest federal data show a slight uptick at 88,000 barrels per day.
Brent crude futures, the global benchmark for oil prices, were at $46.80 per barrel, up 9 cents, or 0.2 percent, from their last close. Amid this rally, US shale producers took advantage of the price increases to sell their future production at favorable rates.
The two countries have been exempt from a deal to cut 1.8 million barrels per day in production.
Traders said the higher prices reflected opportunistic buying following Friday’s steep fall.
Oil prices remained steady as at May 24 at the worldwide market trading above 50 dollars per barrel, as the traders await formal declaration of the production cut extension. The output-cut agreement has shielded the market to 1.8 million barrels a day.
USA oil production has jumped more than 10 per cent over the a year ago to 9.34 million bpd.
This is while the price for August futures of West Texas Intermediate (WTI) has grown by 0.23 percent and stood at $44.50 per barrel.
With lingering questions surrounding production cuts, the market is “iffy on what OPEC is going to do”, said James Williams, president of energy consultant WTRG Economics in London, Arkansas.
French bank BNP Paribas head of oil strategy Harry Tchilinguirian was quoted by the news agency as saying: “The fundamental mood has taken a turn for the worse”.
“For sure, it does not help the current bearish sentiment”, Ole Sloth Hansen, an analyst at Saxo Bank A/S in Copenhagen, said of Saudi Arabia’s reported production level.
WTI traded just below $44.0 p/b at the United States open with Brent around $46.40.
It’s the reluctance of Russian Federation and OPEC-member Iraq to curb their output further that’s probably holding Saudi Arabia back, said Bob McNally, president of consultants the Rapidan Group. Since the start of 2017, crude oil production in the country climbed more than 6%, or 500,000 barrels, to 9.3 million barrels per day―a two-year high.
Opec needs to “shock and awe” the oil market for prices to gain, according to Goldman Sachs Group Inc.