Oil Spikes On OPEC/White House Headlines

A double-whammy of bullish news hit WTI crude futures shortly after 1300ET today sending prices soaring. First, The White House denied earlier rumors on changes to the ethanol mandate; and then Reuters confirmed OPEC production cut compliance steady at 94%.

Following Renewable Fuel Association President Bob Dinneen telling Bloomberg BNA earlier the White House aimed to shift the biofuel mandate’s obligated party from importers and refiners to terminal operators who house, ship and sometimes blend fuel; The White House has no plans to change renewable fuel standard compliance structure, White House spokeswoman tells Bloomberg BNA’s Brian Dabbs. There is no ethanol rule in the works, White House spokeswoman Kelly Love says...

And then Reuters reported,

OPEC has cut its oil output for a second month in February, a Reuters survey found on Tuesday, allowing the exporter group to boost already strong compliance with agreed supply curbs on the back of a steep reduction by Saudi Arabia.

In January, OPEC delivered 82 percent of the promised cuts, according to a Reuters survey and over 90 percent according to OPEC's own report.

Compared with the levels the countries agreed to make the reductions from, in most cases their October output, this means the OPEC members have cut output by 1.098 million bpd of the pledged 1.164 million bpd, equating to 94 percent compliance.

And the resultant spike in crude prices (ahead of tonight's API inventory data).

After WTI and RBOB tagged cycle lows...