In addition, in March, commercial stockpiles of oil in the Organization of Economic Cooperation and Development countries fell 1 million barrels below the five-year average.
Nonetheless, he reiterated the built-in mechanism that the government can resort to if global oil prices reach $80 per barrel.
Stabilizing trade relations between the countries could boost oil demand, Tradition's McGillian said.
PDVSA a year ago started requesting crude from its joint ventures in the Orinoco Belt, Venezuela's largest producing region, to supply its domestic refineries, which also has reduced the volume of oil available to US customers, including Citgo. The latter is somewhat surprising, Flynn said, because Brent crude is trading at more than a $7 premium to US crude, making exports more attractive.
The price of crude is the main factor weighting the markets today.
The blend of oil from Alberta's oilsands is known as Western Canada Select and it, too, has risen to a more than three-year high, nearly touching $58 USA on Tuesday.
The OPEC with its allies has curbed production since January 2017 to get rid of a supply glut that in mid-2014 led to a price collapse. Trump tweeted last month that OPEC had "artificially" pushed up oil prices.
"Whether it's a million barrels more or less, we think we'll have to wait until June before making that announcement", he said. Among the rationale behind those views are shrinking global oil stockpiles and more hawkish US foreign policy.
"If prices get above there, that will further intensify and increase the likelihood that OPEC will do something ..." "With the Saudis now saying they're limiting their production cuts and geopolitical risk already priced in, there is going to be some uncertainty".