OPEC: Oil Output Cuts More Than Pledged In March

That effort has pushed oil prices above $50 a barrel in recent months, breathing life into US oil patches like the Permian Basin.

This week's draw in crude oil inventories is only the sixth draw in the last 15 weeks, using API data, with the API still reporting an overall hefty build over the previous 15 weeks of roughly 37.9 million barrels.

Benchmark Brent crude futures LCOc1 slid 24 cents, or 0.4 percent, to $55.62 a barrel in early Asian trade.

Canada continued to be the largest source of US crude oil imports in 2016, providing a record 3.3 million b/d, or 41% of total USA imports-more than all Organization of the Petroleum Exporting Countries (OPEC) combined.

Despite OPEC's cuts, oil producers around the world still put out 430,000 barrels a day more than worldwide markets could absorb in the first quarter, according to the report.

OPEC countries cut oil output in March by more than they pledged, according to figures the group published in a monthly report, as it sticks to an effort to clear a supply glut that has weighed on prices.

OPEC upgraded its 2017 global demand growth forecast to 1.27 million barrels per day, an upwards revision of 10,000 barrels per day as thirst from Asia rises.


According to a report by Wall Street Journal, Saudi Arabia has informed other members of the oil organisation that it wants to extend a coordinated production cut beyond the first half of this year.

While compliance from some participants has been patchy, Saudi Arabia has made significant cuts, with production down 4.5 per cent since late 2016, despite a slight increase in March to 9.98 million bpd.

Despite the gloomy data, oil investors are holding out hope for short-term good news about a decline in US stocks.

"Positive momentum continued in the country's private sector as suggested by Stanbic IBTC Bank Nigeria PMI", OPEC said in its monthly report. Visit MarketWatch.com for more information on this news.

But OPEC revised up its estimate of oil supply growth from producers outside the group this year to 580,000 bpd, as higher oil prices following the supply cut help spur a revival in US shale drilling.

The threat from United States shale was laid bare in the report, however, with OPEC analysts increasing their forecast for USA production growth by 200,000 bpd to 540,000 bpd this year.


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