<\/p>\n
Nigeria and Algeria \u2014 both members of the Organization of Petroleum Exporting Countries \u2014 have lifted the official selling prices for their supply, a sign that they believe customers are willing to pay more their barrels. That would offer some respite after demand was crushed by the fallout from the coronavirus outbreak.<\/p>\n
<\/p>\n
\u201cThe global market is starting to tighten a bit,\u201d said John Kilduff partner at Again Capital LLC. \u201cYou\u2019ve got constrained supplies in the face of a bit of a rebound at least in demand that is a recipe for these higher prices.\u201d<\/p>\n
<\/p>\n
Output cuts have started to chip away at a massive oversupply, and demand is showing tentative signs of picking up as some economies ease lockdowns that were aimed at containing the virus. That\u2019s helped oil surge about 80% this month, after prices tumbled below zero in April for the first time ever. The so-called futures curve is flattening \u2014 a signal supplies are growing tighter. Russia, a key member of the OPEC+ alliance that has pledged record production cuts, expects the market to balance in June or July.<\/p>\n
<\/p>\n
Still, the fragile nature of the recovery was on display over the Memorial Day weekend in the U.S., when gasoline demand dropped an estimated 25-35% from a year earlier. Consumption slid 0.5% from the Monday prior, according to Patrick DeHaan, an analyst at GasBuddy.<\/p>\n
<\/p>\n
On Tuesday, futures in New York rose as much as 4.7%. Nigeria lifted the selling price for its supplies in June from record lows. Algeria also hiked its official prices by almost $3 a barrel. Meanwhile, Merck & Co released development plans for a treatment and vaccine for Covid-19.<\/p>\n
<\/p>\n
\u201cGlobal supply is still heading lower while demand is rising,\u201d said Bjarne Schieldrop, chief commodities analyst at SEB AB. \u201cThis all lays the ground for higher prices down the road.\u201d<\/p>\n
<\/p>\n
Around the world, producers have slashed global production by 14 million to 15 million barrels a day so far, Russian Energy Minister Alexander Novak said on Monday. The nation sees the current global surplus at 7 million to 12 million barrels a day, RIA Novosti reported Monday.<\/p>\n
<\/p>\n
Though output has been cut and demand is recovering, there are ongoing signs of the damage the virus has wrought on the industry. Both refineries in the Philippines have now been shut as a result of weak fuel demand, according to their operators.<\/p>\n
<\/p>\n
\u2013With assistance from James Thornhill, Bill Lehane and Sharon Cho.<\/p>\n
<\/p>\n
\u00a9 2019 Bloomberg L.P<\/em><\/p>\n gCaptain<\/p>\n","protected":false},"excerpt":{"rendered":" Nigeria and Algeria \u2014 both members of the Organization of Petroleum Exporting Countries \u2014 have lifted the official selling prices for their supply, a sign that they believe customers are willing to pay more their barrels. That would offer some respite after demand was crushed by the fallout from the coronavirus outbreak. \u201cThe global market …<\/p>\n","protected":false},"author":1,"featured_media":10499,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[56],"tags":[6846,6847,166,3079,2913,5791,6845],"class_list":["post-10498","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marine-world","tag-confidence","tag-hiking","tag-oil","tag-prices","tag-producers","tag-rallies","tag-showing"],"_links":{"self":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/10498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/comments?post=10498"}],"version-history":[{"count":0,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/10498\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media\/10499"}],"wp:attachment":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media?parent=10498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/categories?post=10498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/tags?post=10498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}