Oil prices cut gains after sharp rise in US stocks By Reuters

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© Reuters. FILE PHOTO: A gas pump at a gas station in Seoul on June 27, 2011. REUTERS / Jo Yong-Hak / File Photo

By David Gaffen

NEW YORK (Reuters) – Oil prices rose Thursday after major oil producer Saudi Arabia rejected calls for more OPEC + supplies and the International Energy Agency said the surge in prices could stimulate demand for oil among power producers.

The market slashed gains after inventories rose more than expected as refiners cut production during a generally slower period for these facilities.

Futures gained 62 cents, or 0.75%, to $ 83.80 a barrel at 12:57 a.m. EDT (1657 GMT) after hitting a high of $ 84.50 a barrel. US West Texas Intermediate (WTI) crude futures rose 55 cents to $ 80.99.

US crude inventories rose a surprising 6 million barrels, far more than the modest increase of 702,000 barrels expected by analysts. Production increased slightly, reaching 11.4 million bpd. [EIA/S]

“The continued increase in domestic oil production in the United States is pulling the market down a bit. This should relieve some of the growing pressure in the market,” said John Kilduff, partner at Again Capital LLC in New York City. .

Demand for oil is expected to increase by half a million barrels per day (bpd) as the power sector and heavy industries abandon more expensive sources of energy, the IEA said, warning that the crisis energy could fuel inflation and slow the global economic recovery from the pandemic.

In its monthly report, the IEA increased its forecast for global oil demand growth in 2022 to 210,000 bpd, and now expects total oil demand in 2022 to reach 99.6 million bpd. b / d, slightly above pre-pandemic levels.

Saudi Arabia has rejected calls for further increases in OPEC + production, saying the removal of production cuts by the group shielded the oil market from the sharp price swings seen in the natural gas and oil markets. coal.

At its meeting this month, OPEC + stuck to its previous agreement to increase production by 400,000 bpd per month.

OPEC +, the Organization of the Petroleum Exporting Countries (OPEC) and its Russian-led allies, has done a “remarkable” job as so-called regulator of the oil market, Saudi Energy Minister says , Prince Abdulaziz bin Salman, at a forum in Moscow.

U.S. shale producers have been reluctant to invest in increasing production after years of low yields. US production remains well below the record at the end of 2019 at nearly 13 million barrels per day. On Wednesday, the EIA announced that production would rebound to 11.7 million bpd in 2022.

The White House has been in talks with oil and gas producers over fuel costs, with retail gasoline prices hitting seven-year highs and winter heating bills expected to rise.

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