US crude stocks recorded their largest one-week drawdown since December of last year after imports fell sharply. Crude oil inventories declined by -5.247 million barrels during the week ending May 5th according to data released by the US Energy Information Administration on Wednesday. Separately, Saudi Arabia, has informed several refiners in Asia of its first cuts in crude allocations since the OPEC deal to reduce output took effect in January.
Reuters is reporting that state-owned Saudi Aramco will curb oil supplies to Asian customers by almost 7 million barrels beginning next month. US crude June futures were last seen around $47.80 with analysts predicting that a decisive break above strong resistance around $48.00 per barrel could spur a climb back to the key psychological level of $50.00.
Oil Prices Extend Gains
Daily Analysis - 11/05/2017