{"id":8658,"date":"2020-04-25T03:36:31","date_gmt":"2020-04-25T00:36:31","guid":{"rendered":"https:\/\/www.al-sindbad.net\/oil-buoyed-by-production-cuts-to-end-historic-week\/8658\/"},"modified":"2020-04-25T03:36:31","modified_gmt":"2020-04-25T00:36:31","slug":"oil-buoyed-by-production-cuts-to-end-historic-week","status":"publish","type":"post","link":"https:\/\/www.al-sindbad.net\/oil-buoyed-by-production-cuts-to-end-historic-week\/8658\/","title":{"rendered":"Oil Buoyed by Production Cuts to End Historic Week"},"content":{"rendered":"<p><\/p>\n<p>West Texas Intermediate for June delivery rose 2.7% Friday, closing the curtain on a <a href=\"https:\/\/gcaptain.com\/spot-u-s-oil-futures-crash-below-zero-heres-what-the-experts-are-saying\/\">tumultuous week<\/a> of wild price swings. U.S. operators have started to shut old wells and halt new drilling, actions that could\u00a0reduce output\u00a0by 20%. Russia\u2019s seaborne exports from the Baltic will fall to a 10-year low in May, while Kuwait and Algeria said they are reducing production earlier than required under the OPEC+ deal.<\/p>\n<p><\/p>\n<p>\u201cThe production cuts are helping sentiment,\u201d Andrew Lebow, senior partner at Commodity Research Group said. \u201cWe have a long way to go to balance the market. Traders are still very concerned about the storage situation.\u201d<\/p>\n<p><\/p>\n<p>Oil exploration across the U.S. fell\u00a0the most\u00a0in 14 years with drillers idling 60 rigs, according to data from Baker Hughes Co. on Friday. This marks the sixth straight week of decreased activity levels, halting almost half of American exploration.<\/p>\n<p><\/p>\n<p>\u201cRig counts are a drop in the bucket,\u201d said Tariq Zahir, commodity fund manager at New York-based Tyche Capital\u00a0Advisors\u00a0LLC. \u201cDemand has to come back and until you see that it\u2019s going to be a very hard argument to say why crude oil should massively go higher.\u201d<\/p>\n<p><\/p>\n<p>Still, a massive glut remains and it won\u2019t clear quickly, consultant FGE said, deepening its forecast for demand loss yet again. In a sign of how severe the supply imbalance is, traders are\u00a0<a href=\"https:\/\/gcaptain.com\/oil-market-so-glutted-traders-use-tiny-barges-to-store-fuels\/\">using barges<\/a>\u00a0\u2013 usually busy moving fuels around Europe\u2019s petroleum-trading hubs \u2013 as cargo storage instead. Meanwhile, an American\u00a0pipeline operator\u00a0is looking at ways to free up space on its conduits to stock more crude.<\/p>\n<p><\/p>\n<p>With no clear indication of when demand might recover, the market is set for a prolonged slump that will reshape the industry for years to come. Oil\u2019s collapse will be followed by the\u00a0weakest recovery\u00a0in history, according to the World Bank.<\/p>\n<p><\/p>\n<p>\u201cThere are only two things that can save the market from its current anguish: a recovery in demand or additional supply cuts,\u201d said Stephen Brennock, an analyst at PVM Oil Associates. \u201cTumultuous, erratic, and unprecedented \u2014 the curtain is about to fall on a historic week for the oil market.\u201d<\/p>\n<p><\/p>\n<p> \u2013With assistance from\u00a0Alex Longley,\u00a0Dan Murtaugh,\u00a0James Thornhill\u00a0and\u00a0Saket Sundria.<\/p>\n<p>gCaptain<\/p>\n","protected":false},"excerpt":{"rendered":"<p>West Texas Intermediate for June delivery rose 2.7% Friday, closing the curtain on a tumultuous week of wild price swings. U.S. operators have started to shut old wells and halt new drilling, actions that could\u00a0reduce output\u00a0by 20%. Russia\u2019s seaborne exports from the Baltic will fall to a 10-year low in May, while Kuwait and Algeria &hellip;<\/p>\n","protected":false},"author":1,"featured_media":8659,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[56],"tags":[5341,1611,2482,166,2765,1328],"class_list":["post-8658","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marine-world","tag-buoyed","tag-cuts","tag-historic","tag-oil","tag-production","tag-week"],"_links":{"self":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/8658","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=8658"}],"version-history":[{"count":0,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/posts\/8658\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media\/8659"}],"wp:attachment":[{"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/media?parent=8658"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/categories?post=8658"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.al-sindbad.net\/rest\/wp\/v2\/tags?post=8658"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}