Oil: Weaker demand and rising supply hit prices – ANZ

Crude oil prices fell as the prospect of weaker demand and rising supply hit home, strategists at ANZ Bank apprise.

Key quotes

“Saudi Arabia boosted its output by 290,000b/d to 10mb/d in March, according to a survey by Bloomberg. It is understood that Saudi Aramco is now supplying more than 12mb/d. Overall OPEC production rose by 150kb/d to just over 28mb/d.” 

“Russia indicated it won’t be boosting supply just yet. Government officials were reported to say that a lack of profitability would keep most producers from increasing output for the moment. This saw Brent crude fall sharply.” 

“WTI prices managed to hold up relatively well after reports that the US Energy Department is considering renting space in the nation’s emergency oil reserve to domestic producers. This would help drillers store excess crude.” 

“EIA data showed stockpiles rose by 13.83mbbl last week.”