OPEC meets in Vienna on May 25 to consider whether to prolong the accord reached in December in which OPEC and 11 non-members agreed to cut oil output by about 1.8 MMbbl/d in the first half of 2017.
U.S. crude oil inventories fell for the seventh straight week as refiners processed a near record amount of crude last week, the EIA said May 24, even as gasoline and distillate stockpiles also dipped.
Both crude benchmarks have gained more than 10% from their May lows below $50 per barrel, rebounding on a consensus that OPEC and other producers will maintain strict limits on oil production.
OPEC and non-OPEC ministers meet for informal consultations in Vienna on May 24 in a last-ditch bid to agree on the duration of oil output cuts.
Trump's White House wants to sell half of the nation's emergency oil stockpile and open the Alaska National Wildlife Refuge to drilling as part of plans to balance the budget over the next 10 years.
Saudi Energy Minister Khalid al-Falih said he did not expect any opposition within OPEC to extending the curbs for a further nine months, speaking after he met his Iraqi counterpart in Baghdad.
Ahead of OPEC’s May 25 meeting, the U.S. Energy Information Administration noted the hole that the oil price downturn has opened in member nations’ pockets.
OPEC and other oil producers are on course to agree on an extension of supply cuts at a meeting on May 25, with Saudi Arabia saying most participants are on board with the plan to rein in a global supply glut.
Some countries may be better positioned to attract investment to meet future demand, according to a global risk consultancy.
The U.S. Energy Information Administration said May 17 that crude inventories fell 1.8 million barrels for the week to May 12, compared with expectations for a decrease of 2.4 million barrels.