Oil trades higher after OPEC report

Oil futures are trading to the upside during Wednesday’s Asian session after getting a lift from an unchanged global demand outlook report from the Organization of Petroleum Exporting Countries.
On the New York Mercantile Exchange, light, sweet crude futures for April delivery rose 0.18% to USD92.71 per barrel in Asian trading Wednesday. Crude settled up 0.86% at USD92.85 a barrel on Tuesday in the U.S.

On Tuesday, OPEC said its 2013 demand forecast, calling for an increase of 800,000 barrels per day, is unchanged. However, the 12-nation cartel that accounts for 40% of global oil output, said it expects non-OPEC supply of 1 million barrels per day will cut into its market share.

Also on Tuesday, the U.S. Energy Information Administration slightly lowered its 2013 forecast for Brent crude to USD108 per barrel from USD109.

Elsewhere, Argentina’s YPF, the company nationalized by the South American nation last year, said it expects to spend USD5 billion to increase oil and natural gas output.

Staying in South America, Brazil’s Petrobras said its pre-salt areas could be home to 35 billion barrels of oil equivalent, more than double the country’s current reserves. Brazil is South America’s second-largest oil producer behind OPEC member Venezuela.

Chevron, the second-largest U.S. oil company, said its on track to meet its 2017 production target of 3.3 million barrels of oil equivalent per day. California-based Chevron, a Dow component, produced 2.6 million barrels per day last year.

The company is counting on massive projects, such Australia’s Gorgon field, to help it meet the 2017 target. Chevron plans to spend USD36.7 billion on exploration and production this year up from USD34.2 billion last year.

Meanwhile, Brent futures for May delivery rose 0.02% to USD109.25 per barrel on the ICE Futures Exchange. 

COURTESY : INVESTING.COM