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By Michael Poulson, A/S Global Risk Management

Oil prices continue the ascend, on track for the longest streak of gains since August 2016 on the back of news that Saudi is supporting another 6 month extension and ongoing geopolitical tensions.

Saudi Arabia, the largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC), has told other producers that it wants to extend a coordinated production cut beyond the first half of the year, the Wall Street Journal reported. OPEC and other producers, including Russia, have pledged to cut output by around 1.8 million barrels per day (bpd) during the first half of 2017 in an effort to rein in oversupply and prop up prices.

Ahead of weekly inventory reports from the U.S. EIA tonight, analysts expect U.S. crude stockpiles to have edged up but refined oil product inventories to have fallen last week. For the week to April 7, commercial crude inventories in the U.S. are expected 0.1 mil bbls higher. Gasoline stockpiles are projected to have dropped by 1.7 mil bbls. Inventories of distillate fuels, which include heating oil and diesel, are forecast to have fallen by 0.9 mil bbls. U.S. refinery utilisation rates are expected to have been risen by 0.4%.

On the economic front, President Trump is due to speak and could give further clues on the ongoing geopolitical tensions following the Syria missile attacks. Following which, we have the all-important crude oil inventories data due.

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A/S Global Risk Management is a provider of customised hedging solutions for the management of price risk on fuel expenses. The company has offices in Denmark and Singapore. For further details about its risk management products and services, please call +45 88 38 00 00 or email hedging@global-riskmanagement.com.