The general feeling that the world is still awash in crude thanks to USA shale producers seems persistent enough not to be bucked by anything reported by the EIA, although a major draw in both crude oil and gasoline inventories might do the trick for a while.
US crude stocks fell last week as refineries cut output, while gasoline stocks decreased and distillate inventories fell, the Energy Information Administration said on Wednesday.
Meanwhile, crude prices bounced back above $47 and continued to surge as investors' sentiment on the rising levels of US oil output softened after the EIA reported a bullish inventory data.
Reuters reported on Tuesday that state-owned Saudi Aramco will reduce oil supplies to Asian customers by about 7 million barrels in June. At 522.5 million barrels, crude stocks were the lowest since February.
In 2018 average output is expected to reach 1.94 million barrels per day in Q1, 1.91 million barrels per day in Q2, 1.94 million barrels per day in Q3 and 1.99 million barrels per day in Q4.
USA light crude oil was $1.43 higher at $47.30 a barrel.
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Five of eight board members present voted to back the waiver for all three schools, but six votes were needed for approval. A more-favorable-than-previously-anticipated report could lead to additional money for the schools, Ward suggested.
Further, the EIA upgraded its crude oil estimate to an average of 9.3 million barrels per day (bpd) in 2017 and 10 million bpd in 2018.
However, after Brent fell below $50 a barrel last week, analysts said producers felt forced to act.
However, oil prices cut their gains on May 9, 2017, as a persistent rise in United States crude output activity seemed to lower the hopes regarding the extension of OPEC-led supply cuts.
OPEC meets on May 25 to decide on production policy for the second half of 2017, and most analysts expect the group to extend cuts until at least the end of the year.
Oil prices have recovered somewhat this week as OPEC and Russian officials have signaled a renewal of the production deal is likely. This was the largest streak of back-to-back declines in USA oil stocks since September.
Not surprisingly, data suggest professional traders have been turning increasingly bearish on oil while trimming their long exposure to the commodity. Meanwhile, the RSI at 44.1729 suggests crude prices is settling at a neutral phase.
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