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Oil was headed for the longest run of daily gains in more than nine months on signs the worst of the supply glut may be over as production cuts start to take effect.
Futures in New York climbed for a fifth day to near $22 a barrel after Genscape reported a 1,8 million-barrel build in inventories at Cushing, Oklahoma, the delivery point for West Texas Intermediate crude.
That would be the smallest weekly increase since mid-March if confirmed by official data due yesterday. Meanwhile, the discount on oil for June delivery relative to July narrowed to the least in a month, indicating concerns about over-supply may be easing.
The American oil benchmark has doubled from an intra-day low of around $10 a barrel last week as the OPEC+ deal to pump less crude came into effect May 1.
In the US, Exxon Mobil, Chevron and ConocoPhillips plan to curb as much as 660 000 barrels a day of combined output by the end of June even as an effort to mandate Texan production cuts was pronounced dead on arrival.
The improving sentiment has also been driven by early signs the plunge in demand might have bottomed out in some markets, although clearing the glut built up over the last couple of months will take time. — Bloomberg.
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