London: Oil pushed further above $62 (Rs2,666) on 12 April after the International Energy Agency (IEA) said Opec (Organization of Petroleum Exporting Countries) has tightened output too much and there has been a steep fall in petrol stocks in the US.
US crude was up 66 cents at $62.67 a barrel, after it settled up 12 cents on 11 April. London Brent rose 67 cents to $68.51 ahead of its expiry on 13 April.
“Opec supply curbs since last autumn have coincided with two quarters of heavy Organization for Economic Cooperation and Development stock draws and output remains below the level needed to generate the spring crude stock,” said IEA, energy adviser to 26 industrialized nations.
Current Opec production— the group agreed cuts totalling 1.7 million barrels per day at two meetings late last year— could mean further tightening in stocks in the coming months, given little spare capacity and apparently sharp draws in commercial inventory since the last quarter of 2006, it said. Sharply falling US petrol stocks shown in government data on 11 April added to the tight outlook.
“The market probably tipped a bit higher on the relatively bullish IEA market report,” said Harry Tchilinguirian of BNP Paribas.
The figures showed petrol stocks in the world’s top consumer slid 5.5 million barrels last week ahead of the peak summer demand season, far more than a 1.4 million-barrel drop analysts had forecast and taking stocks nearly 5% below the same time last year.