Crude-oil futures early Wednesday headed higher for a third straight session, with U.S. crude trading near its highest level since mid-November, amid further evidence of tight supplies and a slowdown in U.S. output.
April West Texas Intermediate crude CLJ9, +1.62% rose 57 cents, or 1%, to reach $57.44 a barrel on the New York Mercantile Exchange, which would market its highest settlement, if it holds, since Nov. 12 for a most-active contract, according to FactSet data.
Global benchmark May Brent crude LCOK9, +0.78% gained 43 cents, or 0.6%, to $67.10 a barrel on ICE Futures Europe, putting the international contract on track for its highest finish since late February.
There was a brief delay to some energy futures price settlements on Nymex Tuesday, with Matt Stroud, a CME Group spokesman, citing “a technical issue.”
On Tuesday, the U.S. Energy Information Administration trimmed its forecasts for U.S. crude production for this year and next and lifted its 2019 forecasts for U.S. and global benchmark oil prices, according to its Short-term Energy Outlook report released Tuesday.
That report combined with U.S. sanctions on the oil industries in Iran and Venezuela, both members of the Organization of the Petroleum Exporting Countries, has fostered a bullish environment for crude, market participants say.
“Today’s rally was supported by the EIA cutting of both the 2019 and 2020 US production forecasts, which are still expected to deliver record levels,” wrote Edward Moya, chief market strategist at OANDA, in a note.
Looking ahead, the EIA later today releases weekly data on U.S. petroleum stockpiles at 10:30 a.m. Eastern Time. That comes ahead of a monthly OPEC oil-market, followed by a separate crude outlook from the International Energy Agency on Friday.
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