Oil pared gains amid rising stockpiles at the biggest U.S. storage hub, signaling a crude supply drain may be slowing. Futures in New York closed 0.6% higher on Monday. Inventories at Cushing, Oklahoma, the delivery point for benchmark U.S. crude futures, rose by about 852,000 barrels in the period Oct. 26-Oct. 29, according to traders citing data from Wood Mackenzie. Any reversal in the trend of supply declines at Cushing, “should at least quell the panic on inventories,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Management.

Crude has soared this year as economies recover from the pandemic and amid an energy squeeze marked by shortages of gas and coal. Bank of America even said it expects Brent crude to hit to hit $120 a barrel by the end of June. Meanwhile, the Organization of Petroleum Exporting Countries and its allies will meet virtually on Thursday to discuss output policy. The group have loosened supply curbs only gradually, and top exporter Saudi Arabia has maintained a cautious stance.

U.S. President Joe Biden criticized Saudi Arabia and Russia for an inadequate response to the energy crunch while speaking after a Group of 20 summit on Sunday. However, OPEC+ has remained steadfast in resisting the pressure, with Kuwait becoming the latest country to say the group should stick with its plan to increase output only gradually. Analysts believe the cartel will stay the course, in fear of making the same mistakes of overproduction they have in the past.  The winter is coming and the group doesn’t know if lockdowns in the future will derail demand, Amrita Sen, chief oil analyst at Energy Aspects Ltd., said in a Bloomberg Television interview. “They don’t want to preempt anything.”

Inventories at Cushing have been draining as oil prices for immediate delivery are well above those for delivery in the future, making storing oil unprofitable. Stockpiles are currently sitting at the lowest since late 2018. Over the weekend, China said it would release state reserves of diesel and gasoline to ease shortages. The move is a part of an annual rotation of holdings, but the government has given neither volumes nor a schedule.

Meanwhile, stockpiles at the biggest U.S. storage hub at Cushing, Oklahoma, continue to rapidly shrink. Supplies fell another 1.81 million barrels last week, according to traders citing Wood Mackenzie data.

Crude has eased off of multiyear highs in recent days yet still remains elevated. European natural gas prices dropped after President Vladamir Putin signaled that Russia will send extra gas to the continent next month. Plus, Iran and the European Union agreed to restart negotiations on a revival of the 2015 nuclear accord, signaling a greater prospect of Iranian barrels coming back to the market.

Still, by the end of the year, stockpiles in developed economies will stand 158 million barrels below average, a bigger deficit than the 106 million projected a month ago, the figures evaluated by the OPEC+ Joint Technical Committee show. The committee will report to OPEC+ ministers, who meet on Nov. 4, to consider another production increase.

The group has found itself increasingly under pressure from governments worldwide to further boost supply. Earlier this month, Nigeria and joined Saudi Arabia said that they group must resist pressure to raise oil production faster until the coronavirus pandemic abates. Traders believe the cartel will stay the course, in fear of making the same mistakes of overproduction in March of 2020. “How much political pressure they can bear is another question,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Management.

Meanwhile, the U.S. is pushing for higher production as oil prices remain elevated. U.S. Senior Advisor for Global Energy Security Amos Hochstein said the global economy is facing an energy crisis at the IEF Special Gas Market Dialogue. This comes as the White House has attempted to pressure OPEC+ to increase output as demand for crude rebounds due to the global economic recovery and gasoline prices increase. “We found ourselves in an energy crisis,” Hochstein said. “Producers should ensure that global oil markets and gas markets are balanced.”

Inventories at Cushing have been draining as oil prices for immediate delivery are well above those for delivery in the future, making storing oil unprofitable. On Wednesday, a U.S. government report showed Cushing crude stockpiles declined by the most since January last week.

U.S. crude futures rose 1.1% on Tuesday, holding at the highest since 2014. The industry-funded American Petroleum Instutute reported crude supplies at Cushing fell 3.73 million barrels last week, according to people familiar with the data. That would be the largest decline since January if confirmed by U.S. government data on Wednesday. Supply declines at Cushing in recent weeks have led to huge moves in time spreads as traders pay premiums for more immediate supply. Supply and demand balances at the hub drive daily oil trading worth hundreds of millions of dollars. Fears of stockpiles falling below minimum operating levels have continued to push oil prices higher, said Phil Flynn, senior market analyst at Price Futures Group Inc. Refiners “are drawing down on Cushing at a pretty incredible pace right now. We’re getting close to empty.”

Crude futures have surged in recent months with a shortage of natural gas and coal boosting demand for oil products. Larry Fink, chairman and chief executive officer of BlackRock Inc., even said there’s a high probability that crude could hit $100 a barrel. The global benchmark Brent is approaching its 2018 high of $86.74 a barrel.

The Organization of Petroleum Exporting Countries and its allies are due to gather next week to assess output policy. Nigeria joined fellow OPEC+ member Saudi Arabia this week in saying the group must resist pressure to raise oil production faster until the coronavirus pandemic abates.

The API also reported a crude supply gain of 2.32 million barrels last week. Gasoline and distillate inventories also rose, the data showed.

The crude market’s pricing structure remains deeply backwardization, a bullish pattern in which near-term prices are more costly than those further out. Brent’s prompt spread — the difference between its nearest two contracts — is at 75 cents a barrel after rallying to as high as 97 cents on Monday. The global benchmark crude is nearing its 2018-high of $86.74 a barrel.

Traders also are keeping tabs on talks that eventually may help revive an Iranian nuclear accord, allowing a pickup in crude exports. Discussions between Tehran and the European Union are due to be held in Brussels on Wednesday, part of a drawn-out effort to clear the way for a wider diplomatic push.