Oil Above $30 For First Time In Two Months On Massive Production Cuts Chatter

Oil Above $30 For First Time In Two Months On Massive Production Cuts Chatter

I cover commodities, mostly oil & gas, often debunking risk premiums.. Oil futures traded above $30 per barrel on Monday (May 18) for the first time in two months, as the perception of huge production cuts supported prices in a marked contrast to the dire sentiment seen in April.. The Brent July contract traded 5.38% or $1.75 higher at $34.25 per barrel, as production cuts in the U.S. and OPEC+ pledges of 9.7 million barrels per day (bpd) in output reductions helped create the perception of a market on its way towards rebalancing.. Although significantly down from the all-time-high 26.7 million bpd implied builds in April, the market will need to absorb crude into storage both onshore and at sea.". And let's not forget, any Covid-19 resurgence aside, there is always a risk that OPEC+ compliance with production cuts might falter as oil prices recover.. I am a UK-based oil & gas sector analyst and business news editor/writer with over 20 years of experience in the financial and trade press.. My oil market commentary has a partial supply-side bias based on a belief that the risk premium is often given gratuitous, somewhat convenient, prominence by cheeky souls who handle quite