Oil prices tilted higher on Friday, trading around a three-month peak, after a report showed a bigger-than-expected decline in weekly U.S. stores of crude and its byproducts. The Energy Information Administration showed that U.S. crude supplies fell by 5.467 million barrels for the week ended Dec. 20. Analysts polled by S&P Global Platts had forecast a decrease of 3 million barrels, although the less closely followed American Petroleum Institute report showed a 7.9 million-barrel tumble late Tuesday, according to sources. EIA data also showed supply increases of 1.963 million barrels for gasoline stocks and a decline of roughly 152,000 barrels for distillates, government data showed. West Texas Intermediate crude for February delivery US:CLF20, the U.S. benchmark grade, rose 13 cents, or 0.2%, at $61.81 a barrel on the New York Mercantile Exchange, around its highest price since Sept. 16, according to Dow Jones Market Data. February Brent crude BRNG20, +0.34%, meanwhile, added 30 cents, or 0.4%, at $68.19 a barrel on ICE Futures Europe, following a 1.1% gain in the prior session. That contract expires on Dec. 30. The March contract BRNH20, +0.18%, which is currently the most active, was up 15 cents, or 0.2%, at $66.92. The international benchmark on Thursday finished at a roughly three-month high. Phil Flynn, senior market analyst at The Price Futures Group, said that the EIA inventory data reflect refiners, who process crude, ramping up activity and helping to take down supplies. “It looks like refiners are back…” Flynn told MarketWatch. “So very supportive!” All that said, market participants also were digesting a report signaling that the group known as OPEC+, including members of the Organization of the Petroleum Exporting Countries and allies like Russia, may consider ending a pact to reduce global production next year.
“As far as the production cuts are concerned, I repeat once again, this is not an indefinite process. A decision on the exit should be gradually taken in order to keep up market share and so that our companies would be able to provide and implement their future projects,” said Russian Energy Minister Alexander Novak, according to Reuters on Friday, citing Russia broadcaster Rossiya 24 TV. The report comes days after Novak was quoted as saying that OPEC+ may consider easing output Bloomberg News, citing a report from JBC Energy, is forecasting that oil production outside of OPEC and the U.S. next year is set to rise by the most in about 15 years. For the week, WTI has gained 2.1%, while Brent is poised for a 2.7% weekly gain, based on last Friday’s settlement of the most-active contract. Nick Note: I repeat my firm belief that massive increase in oil production are coming… As everyone and their dog is in a global scramble fr CASH!