A double-whammy of bullish news hit WTI crude futures shortly after 1300ET today sending prices soaring. First, The White House denied earlier rumors on changes to the ethanol mandate; and then Reuters confirmed OPEC production cut compliance steady at 94%.
First,earlier rumors of a change to the ethanol mandate were denied by The White House…
The White House is denying rumors on changes to the ethanol mandate. pic.twitter.com/IsmexzMsPj
— Amy Harder (@AmyAHarder) February 28, 2017
And then Reuters reported,
JUST IN: OPEC members subject to oil supply cut targets achieve 94 percent of pledged reductions in February – Reuters survey
— Reuters Business (@ReutersBiz) February 28, 2017
OPEC has cut its oil output for a second month in February, a Reuters survey found on Tuesday, allowing the exporter group to boost already strong compliance with agreed supply curbs on the back of a steep reduction by Saudi Arabia.
In January, OPEC delivered 82 percent of the promised cuts, according to a Reuters survey and over 90 percent according to OPEC’s own report.
Compared with the levels the countries agreed to make the reductions from, in most cases their October output, this means the OPEC members have cut output by 1.098 million bpd of the pledged 1.164 million bpd, equating to 94 percent compliance.
And the resultant spike in crude prices (ahead of tonight’s API inventory data).
After WTI and RBOB tagged cycle lows…