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West Texas Intermediate (WTI) crude oil climbed over 1.8% on Wednesday as two supply headwinds unfolded in tandem. Most notably, Nigerian President Muhammadu Buhari is reportedly considering a reduction in crude output in pursuit of higher prices. If pursued, the decision would signal a conscious effort by an OPEC member to supplement recent crude production cuts by OPEC.

Elsewhere, Saudi Aramco announced they will temporarily close their Yanbu refinery for maintenance. According to Reuters, the refinery offers roughly 400,000 barrels per day in processing capacity.

The two events unfolded at a crucial time for crude oil bulls as non-OPEC supply concerns looked to pressure the fossil fuel’s price. On Tuesday, the EIA showed that US oil supply from several key shale regions is expected to increase by 84,000 barrels per day to 8.397 million barrels per day, notching a new record.

Together, the events drove crude oil north of $57. At the time of this report, crude oil traded 1.80% higher on the day around $57.43. As a reminder, given the US holiday on Monday, Wednesday night was to see the API crude report with the Department of Energy crude inventories data scheduled Thursday at 16:00 GMT.

SOURCE: oglinks.news