Markets > Commodities

Oil prices climb amid signs of supply tightening

Xinhua News,NEW YORK
2020-05-15 04:09

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NEW YORK, May 14 (Xinhua) -- Oil prices rose noticeably on Thursday amid signs of supply tightening.

The West Texas Intermediate for June delivery increased 2.27 U.S. dollars to settle at 27.56 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery was up 1.94 dollars to close at 31.13 dollars a barrel on the London ICE Futures Exchange.

"Global oil supply is set to fall by a spectacular 12 mb/d (million barrels a day) in May to a nine-year low of 88 mb/d, as the OPEC+ agreement takes effect and production declines elsewhere," the International Energy Agency said in its closely-watched monthly report on Thursday, adding "a resurgence of COVID-19 is a major risk factor for demand."

Meanwhile, the U.S. Energy Information Administration said on Wednesday that U.S. crude oil inventories decreased by 0.7 million barrels during the week ending May 8.

The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, agreed to cut output by 9.7 million barrels per day for May and June, aiming to tackle a global supply glut on the back of the COVID-19 crisis.
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