OPEC delegates say rising international inventories might strengthen the case for holding cuts

Oil prices jumped by the most since February yesterday on speculation that OPEC+ would leave voluntary cuts in place when they meet on Sunday.

Just out is a report from Reuters citing OPEC+ delegates that says rising global inventories may strengthen the case to continue cuts. Preliminary data showes OECD inventories up 20 million million barrels in the month and 34 million barrels year over year.

“This is a concern” said a delegate.

I would expect the debate to focus more on forecasts for demand and supply later in the year, particularly in the upcoming driving season. That said, if OPEC+ is looking for an excuse to tighten the market and draw down inventories, they have it and US producers are showing some discipline as well.