Crude rebounds as OPEC hints at longer oil output cuts

Oil climbed as top crude-exporting countries suggest they may extend output curbs beyond this year, adding momentum to a monthly rebound.

Crude has rebounded more than 50 percent since June 2017, with the rally regaining steam this month as geopolitical worries heat up. President Donald Trump’s appointment of John Bolton as national security adviser triggered speculation of renewed sanctions against Iran, OPEC’s third-largest producer.

Meanwhile, the rapid increase in American crude production, which has topped 10 MMbpd each week since early February, has placed a lid on prices that have remained below January’s three-year high of $66.66.

West Texas Intermediate for May delivery gained 56 cents to settle at $64.94/bbl on the New York Mercantile Exchange, with prices posting a third-straight quarterly gain, the longest streak since 2011.

Brent for May settlement added 74 cents to end the session at $70.27/bbl on the London-based ICE Futures Europe exchange. The more-active June contract rose 58 cents to settle at $69.34. The global benchmark traded at a $5.33 premium to WTI.

OPEC Secretary-General Mohammad Barkindo said the group is looking for long-term cooperation with other global producers.

In the US, the most recent Energy Information Administration data showed that while crude inventories ticked higher, gasoline supplies shrank. BNP Paribas boosted its 2018 WTI and Brent forecasts amid OPEC’s efforts to balance markets and the geopolitical fallout from tensions between the US and Iran.