Oil furthers also popped Wednesday after data revealed U.S. stockpiles unexpectedly pulled back last week.
Looking ahead, fundamentals are improving. The International Energy Agency projects consumption to increase each quarter of 2019 year-over-year, albeit at a slower-than-usual pace for the first quarter. Meanwhile, on the supply side, Saudi Arabia and other members of the Organization of Petroleum Exporting Countries have been cutting output. Additionally, U.S. sanctions on Iran and Venezuela have reduced further bets on international supplies.
“Too many international barrels have been taken off the market,” Bob Yawger, director of the futures division at Mizuho Securities USA, told the WSJ. “There’s a lot of uncertainty around production.”
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