Brent crude was up 1 cent at $31.13 a barrel by 0115 GMT, after rising nearly 7% on Thursday. The global benchmark is roughly flat on the week after rising for the previous two weeks.
Giving up earlier gains, West Texas Intermediate (WTI) oil was down 13 cents, or 0.5%, at $27.43 a barrel, having jumped 9% in the previous session. WTI is still heading for a third weekly gain, up more than 10%.
Prices have been lifted by more signs that oil output is falling among OPEC and other major producers, a grouping known as OPEC+. But the market mood remains cautious, with the coronavirus pandemic far from over and new clusters emerging in countries where lockdowns have been eased.
There remains the “risk of renewed outbreaks of COVID-19 … and question marks over how far OPEC+ production cuts will be implemented,”
Still, as demand increases with the easing of lockdowns to get economies going again, the IEA said it expects crude inventories to fall by about 5.5 million bpd in the second half of this year.
U.S. crude inventories fell for the first time in 15 weeks, the Energy Information Administration said on Wednesday, dropping by 745,000 barrels to 531.5 million barrels in the week to May 8. Analysts had expected another increase.
Output cuts will boost the trend towards lower inventories.
OPEC+ had already agreed to cut production by nearly 10 million bpd, a record amount, and Saudi Arabia extended its planned reductions for June, pledging earlier this week to slashing production by nearly 5 million barrels per day.
Saudi Aramco, the world's largest oil exporter, reduced the volume of crude it will supply to at least three buyers in Asia by as much as 30% for June.
IMPORTANT LEVELS FOR 15/05/2020
RESISTANCE 1 – 2070
RESISTANCE 2 – 2096
RESISTANCE 3 – 2114
SUPPORT 1 – 2046
SUPPORT 2 – 2024
SUPPORT 3 – 1999
ProCapitas Market-Pro Team