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Crude Oil Rises Amid Shrinking U.S. Surplus as OPEC Prepares to Gather

Gold Silver Reports (GSR) – Crude Oil Rises Amid Shrinking U.S. Surplus as OPEC Prepares to Gather – Futures in New York briefly surged almost 3 percent on Wednesday to the highest since 2014. An Energy Information Administration report showed shrinking American petroleum surpluses and the first crude withdrawal from the largest U.S. storage complex in six weeks. The U.S. draw-downs underlined optimism that an OPEC-led effort to curb global supplies will be reinforced later this week when the cartel and allied producers gather in Saudi Arabia.

“We continue to see extremely strong compliance” by OPEC nations to self-imposed supply limits, said Nick Holmes, an analyst at Tortoise in Leawood, Kansas, which manages $16 billion in energy-related assets. “It’s a multitude of factors that are contributing to that tighter inventory picture. Globally, we are seeing strong crude demand.”

Crude is trading at levels last seen more than three years ago ahead of an April 20 meeting of major oil producers in the Saudi city of Jeddah to discuss market cooperation. OPEC wants to lure more producers to join the output-reduction deal, U.A.E. Energy Minister Suhail Al Mazrouei.

West Texas Intermediate for May delivery advanced $1.60 to $68.12 a barrel at 11:15 a.m. on the New York Mercantile Exchange. Total volume traded was about 25 percent above the 100-day average.

Read More: Canada Oil Recovery Faces Threat From Potential Rail Strike

Brent for June settlement climbed $1.52 to $73.10 on the London-based ICE Futures Europe exchange. The global benchmark crude traded at a $4.98 premium to June WTI.

The EIA reported U.S. crude stockpiles dropped 1.07 million barrels last week, while supplies at the Cushing, Oklahoma, pipeline hub dropped by 1.12 million. Gasoline supplies fell 2.97 million barrels and distillate stocks slid 3.11 million barrels to the lowest level since November. – Neal Bhai Reports

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600

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