By Ayenat Mersie
NEW YORK (Reuters) - Oil prices rose on Monday as OPEC reported that the global oil glut has been virtually eliminated, while U.S. crude's discount to global benchmark Brent widened to more than $7, its deepest in five months.
Global benchmark Brent
WTI's discount to Brent
U.S. shale production is expected to hit a record 7.18 million barrels per day (bpd), the Energy Information Administration said.
The production growth may be far from over, contributing to U.S. crude's discount to Brent, analysts said.
Contrastingly, OPEC's latest report was more bullish.
Even so, OPEC and its allies were still trimming output more than their supply-cutting pact required.
"If Iranian crude is really taken off the water, it's going to impact Brent much more than it's going to impact WTI," Zimmerman said.
"Germany has said it will protect its companies from U.S. sanctions, Iran has said French oil giant Total
Michael Wittner, analyst at Societe Generale, forecasts U.S. sanctions will remove 400,000 to 500,000 bpd of Iranian crude from the global market.
Inventories at Cushing, Oklahoma, the delivery point for U.S. crude futures, fell about 410,000 barrels between May 8 and May 11, said traders, citing data from market intelligence firm Genscape.
GRAPHIC: U.S. oil rig count: https://reut.rs/2rEGSMC
(Additional reporting by Christopher Johnson in London and Henning Gloystein in Singapore; editing by David Gregorio, Lisa Shumaker and Jonathan Oatis)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)