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Crude ends April up 25%, as OPEC supply level reaches two-year high

Published 04/30/2015, 02:18 PM
Updated 04/30/2015, 02:38 PM
WTI crude moved near $60 a barrel Thursday, while brent edged toward $67

Investing.com -- Crude futures continued its upward swing on Thursday ending the month of April on a high note, as OPEC supply leaped to its highest level in more than two years and a lower than expected U.S. weekly buildup remained in focus.

On the New York Mercantile Exchange, WTI crude for June delivery gained 0.92 or 1.56% to 59.50 a barrel, reaching its highest level since mid-December. Texas Light Sweet futures are now on pace for their fifth consecutive weekly gain, ending April up more than 25% as concerns of oversupply slightly ease.

On the Intercontinental Exchange (ICE), brent crude for June delivery rose 0.82 or 1.25% to settle at 66.66. The spread between the U.S. and international benchmarks of crude stood at $7.16, slightly below Wednesday's level of $7.26.

Brent also closed the month up more than 18%, as OPEC oil supply reached its highest level since November, 2012. A survey by published by Reuters on Thursday found that output increased by 70,000 barrels per day to 31.04 million barrels. Increases in production in Iraq, Libya and Nigeria boosted OPEC supply levels.

Output in Saudi Arabia fell below record levels from March, but still remained above 10 million barrels per day.

WTI crude, meanwhile, continued its move toward $60, one day after the Energy Information Administration said in its weekly supply report that crude inventories increased by 1.9 million barrels for the week that ended April 24. The buildup was far below consensus estimates of a 3.3 million barrel increase.The build pushed up current U.S. crude inventories to 490.9 million barrels, the most in at least 80 years. A week earlier, crude inventories surged by 5.3 million barrels for the week that ended April 17 -- above forecasts of a 3.2 million build.

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In addition, crude inventories at the Cushing Oil Hub in Oklahoma fell by 514,000 on the week, well below forecasts of a 400,000 gain. The decline marked the first draw at the largest crude storage facility in the U.S. since last November.

Energy investors turn their attention to Friday's weekly rig count from oil services firm Baker Hughes (NYSE:BHI). Last week, the number of oil rigs nationwide fell by 31 to 703 -- its lowest level since 2010. The weekly rig count has declined for 20 consecutive weeks.

WTI Crude is still down more than 43% since last June when it spiked above $105 a barrel.

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