Short Recollection of last week
Beginning by observing the Oil futures; they settled on nearly plane levels on Friday. But still registered the first weekly gain in a month. Inspired by the news that key crude producers will extend output cuts to the period after June;
Firstly, on Thursday, U.S. West Texas Intermediate crude came to the highest since May 3 at $48.22.
Secondly, the U.S. benchmark went up for $1.62, or around 3.4%, after posting three consecutive weekly declines.
Noteworthy, in London Futures Exchange, Brent oil for July delivery added on 7 cents. Later coming to settle at $50.84 a barrel by closing. The global benchmark hit $51.16 a day before. This level was not seen since May 2.
Thirdly, observing the weekly movement, London-traded Brent futures recorded a gain of $1.74, or nearly 3.5%.
OPEC & non-OPEC
OPEC and non-OPEC oil producing countries are discussing the extension of a global supply cuts.
Recently, some officials have suggested the possibility of further & deeper production cuts to help clear a supply glut & rebalance the market completely.
Starting this week, crude sank to a five-month low. Loped by concern over increasing U.S. crude output that has shaken investors’ faith in the ability of OPEC to rebalance the market.
Fourthly, data from energy services company Baker Hughes showed on Friday that U.S. drillers last week added rigs for the 17th week in a row. Indicating that further gains in their production are ahead.
The further U.S. drilling
The U.S. rig count rose by 9 to 712, extending an 11-month drilling recovery to the highest level since August 2015.
Observing natural gas futures for June delivery, they rose 4.8 cents. Which makes it the highest level since January 26 at $3.424 per million. British thermal units, up 1.4% for the session and about 4.9% higher for the week.
All the participants in the market race will see recent weekly information on U.S. stockpiles of crude and refined products on Tuesday and Wednesday. To groove the strength of demand in the world’s largest oil consumer.
Meanwhile, investors will keep an eye out for a monthly report from the IEA for further evidence that global producers are complying with an agreement to reduce output this year.
Inspired by Investing.com; here are some important next week’s events which will likely have impact on market & commodity trades:
Tuesday, May 16
The IEA is going to publish its monthly evaluation of oil markets.
Later in the session the API will publish its weekly report about U.S. oil supplies.
Wednesday, May 17
The U.S. Energy Information Administration is to release weekly data on oil and gasoline reserves.
Thursday, May 18
United States government will give a weekly report about Gas supplies reserves.
Friday, May 19
Baker Hughes operates in more than 90 countries, giving the oil and gas industry info with services for oil drilling, formation evaluation, completion, production and reservoir consulting. It will release weekly data on the U.S. oil rig count in Friday.