US oil price reaches $ 60 a barrel for the first time since November

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The recovery of crude relative to the bear market of last year took a new step on Wednesday. Oil has exceeded $ 60 per barrel for the first time since November 9.

"The positive sentiment sparked by OPEC cuts outweighs the bearish impact of the American shale boom," said Matt Smith, director of commodity research at ClipperData. "They work."

Crude oil dropped to $ 42.53 a barrel on Christmas Eve. Other risk assets, including US equities, have rebounded since then, but not as much as oil.

New evidence of the impact of the OPEC strategy came on Wednesday. US commercial stocks of crude oil fell 9.6 million barrels last week, according to a new report from the Energy Information Administration.

This sudden drop, which canceled expectations for a tiny construction, pushed up oil prices in the United States. The global benchmark, Brent, rose 0.6% to $ 68 a barrel, its highest level in four months.

Saudi Arabia, the world's largest oil exporter, has selected shipments in the United States, which have the most accurate and up-to-date inventory data. This strategy aims to convince oil traders and analysts that the cuts are effective.

"Saudi Arabia is holding back the flows," Smith said.

The OPEC and its allies announced Monday that they were canceling a meeting scheduled for next month to discuss their production cuts. This decision was taken as a sign that the cuts will remain in effect longer.
One of the largest US oil companies wants to be

OPEC was burned last year when it increased production after the US announced sanctions against Iran. But the Trump administration has granted waivers to major Iranian customers and has mitigated the impact of the sanctions.

"The OPEC will be very cautious about removing these production cuts too early," Smith said.

This is good news for Big Oil. Energy stocks posted steady gains Wednesday, despite the market downturn. Pioneer natural resources (PXD), Devon Energy (DVN) and Western Oil (OXY) all rose 1% or more.
Yet soaring oil prices in 2019 are now having an impact on the fuel pump. The national average price of regular gasoline reached $ 2.55 a gallon last week, an increase of about 12% from the end of 2018, according to EIA.
Price rises could stoke the head of President Donald Trump, who has repeatedly attacked OPEC for causing a rise in oil prices.

"It's surprising that he has not tweeted yet, everyone is waiting," Smith said.

Beyond the tweets, Trump could influence the oil market by ordering his administration to renew waivers this spring, allowing Iranian customers to continue buying crude from the sanctioned country.

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