Oil Posts Five-Week High After U.S. Cuts Production Outlook

  • EIA revises down 2020, 2021 U.S. crude output forecasts
  • WTI futures advance 6.8% to its highest level since April 6
Oil Rebounds After Surprise Saudi Cut
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Oil climbed to the highest level since early April after the U.S. government lowered its output forecast for the year.

Futures in New York gained 6.8% on Tuesday. The Energy Information Administration revised downBloomberg Terminal its 2020 and 2021 crude output forecasts in its monthly Short-Term Energy Outlook. An American Petroleum Institute report showedBloomberg Terminal that supplies in Cushing, Oklahoma, fell by 2.26 million barrels, according to people familiar. If the EIA confirms the data on Wednesday, it will be the first draw at the delivery point for U.S. crude futures since the week ending February 28.