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OPEC Secures Deeper Output Cuts
The Organization of the Petroleum Exporting Countries said Wednesday it had received updated plans from Iraq, Kazakhstan, and others to implement additional cuts after exceeding production quotas. These commitments are intended to bring production back in line with agreed targets and add further weight to the tightening supply outlook.
EIA Data Offers Mixed Signals on Supply
U.S. crude inventories rose by 515,000 barrels last week to 442.9 million, slightly above market expectations. The build occurred despite a sharp increase in crude exports, which surged 1.8 million barrels per day to 5.1 million—the highest in about a year. However, a large adjustment figure of 722,000 bpd in “unaccounted for crude oil” balanced the EIA data, dampening the drawdown impact from the export surge.
Refined product inventories offered a stronger bullish signal. Gasoline stocks fell by 2 million barrels, while distillates dropped by 1.9 million barrels to their lowest level since November 2023. Cushing inventories also declined by 654,000 barrels.
Oil Prices Forecast: Bullish Near-Term Outlook
With Iran sanctions tightening supply, OPEC cuts reaffirmed, and refined products showing solid draws, crude is positioned for further upside. A close above $63.34 would strengthen the bullish setup, especially if supported by continued export strength and inventory draws. Near-term bias remains bullish.
More Information in our Economic Calendar.
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