WASHINGTON, April 16 (UPI) -- Brent crude oil topped $63 per barrel early Thursday before moving lower on word OPEC output had surged in March, balancing slowing U.S. production.
The global benchmark was trading at 62.58 for the June contract Thursday morning, after OPEC released its monthly market report, stating March output rose by 810,000 bpd, thanks in part to increased output in Saudi Arabia and Iraq.
Oil markets have faltered; supplies continue to outweigh demand as the global economy struggles to gain traction after the worldwide recession.
OPEC said demand for the cartel's oil this year would be 80,000 barrels per day higher than previously thought.
Related
The International Energy Agency, an organization with headquarters in Paris, said in its monthly oil market report this week it raised its global oil demand for 2015 by 90,000 barrels per day to 93.6 million bpd.
IEA's forecast for global oil demand was 1.1 million bpd above last year's forecast on signs of "a steadily improving global economic backdrop."
The increase in demand corresponds with a rise in global oil supplies. Low oil prices have put pressure on U.S. producers to curb spending on new exploration and drilling, leading to an expected decline by late 2015. While U.S. crude oil inventories remain at a record high, the price for West Texas Intermediate, the U.S. benchmark, jumped Wednesday on word U.S. inventories grew more slowly than expected.
WTI for the May contract was trading at $55.82 Thursday morning, down 57 cents from the previous close. WTI has been on a strong upward trajectory, gaining around 15 percent since the start of April.
Daniel J. Graeber contributed to this report.
