Phil Flynn is writer of The Energy Report, a daily market commentary discussing oil, the Middle East, American government, economics, and their effects on the world's energies markets, as well as other commodity markets. Contact Mr. Flynn at (888) 264-5665
[Jessica Summers, Bloomberg]
Crude retreated from an early rally amid signs of swelling stockpiles at the most important U.S. storage complex.
The Saudi price markups suggest OPEC’s dominant producer has no plans to wind down production caps that rescued the global crude market from the worst downturn in a generation.
West Texas Intermediate for May delivery rose 9 cents to $63.46 a barrel at 11:07 a.m. on the New York Mercantile Exchange. Total volume traded Thursday was about 6 percent above the 100-day average.
Oil prices have also seesawed with equity markets amid brewing concerns about a trade war between the U.S. and China that would clip economic growth and energy demand. On Thursday, the S&P 500 Index climbed as representatives from the U.S. and China left the door open to defusing tensions through negotiations.
Although OPEC-led output limits have eroded a worldwide glut that collapsed prices, U.S. drillers have been steadily raising production to unprecedented levels. An Energy Information Administration report released Wednesday showed U.S. crude stockpiles fell by 4.62 million barrels last week, the biggest draw since January, while crude exports jumped to a record.
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