Oil Gains After US Stockpiles Plunge; OPEC May Raise Output Quotas Today - Bloomberg

Oil climbed for a second day in New York after a report showed U.S. crude supplies declined the most since December and on speculation OPEC will increase production quotas, signaling global fuel demand will climb.

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Futures gained as much as 0.7 percent after the industry- funded American Petroleum Institute said crude stockpiles fell 5.5 million barrels to 366 million. OPEC will raise its output target at a meeting in Vienna today, according to a Gulf delegate with knowledge of the matter. The U.S. raised its forecast for global oil consumption for this year. Futures gained as much as 0.7 percent after the industry- funded American Petroleum Institute said crude stockpiles fell 5.5 million barrels to 366 million. OPEC will raise its output target at a meeting in Vienna today, according to a Gulf delegate with knowledge of the matter. The U.S. raised its forecast for global oil consumption for this year. “The spike can be attributed to the API data,” said Jonathan Barratt , managing director of Commodity Broking Services Pty in Sydney, who predicted crude will average $100 this year. “It’s a bit of a knee-jerk reaction. The U.S. came out with their forecast and said they expected more demand. That’s a bullish view and as a result there may be a bit of pressure” for OPEC to increase output, he said.

Oil Gains After US Stockpiles Plunge; OPEC May Raise Output Quotas Today - Bloomberg