Focus on supply fundamentals drives oil complex higher

摘要

Crude and product futures settled higher Tuesday as the market eyed a tightening global supply outlook. ICE May Brent settled 76 cents higher at $67.97/b, and NYMEX May WTI was up $1.12/b at $59.94/b at market close. "Today's rally in the energy complex is driven by [supply] fundamentals more so than any outside influence," CHS Hedging market analyst John Tjornehoj said. "Not only domestically, but the commitment to overseas supply cuts as well." Russian energy minister Alexander Novak said this week Russia was on pace to meet its 228,000 b/d production cut target by the end of the month, according to media reports. The OPECon-OPEC coalition, jointly chaired by Novak and Saudi Arabia energy minister Khalid al-Falih, is planning to hold its next market monitoring committee meeting May 19 in Jeddah, Saudi Arabia, sources told S&P Global Platts on Tuesday.