Despite volatility and uncertainty in global markets, the oil price is holding up well.
There was a surprise draw on US stocks and in early trading on Friday, Brent crude hit a two-week high above US$66 with WTI holding around US$62 a barrel.
The oil price will always be a moving target with many influences outside the market's control.
A drop in the dollar also helped, but the fall in US inventories continues to demonstrate a sense of tightness in the market.
Net imports to the US have fallen to a record low according to the Energy Information Administration. Inventories were down 1.6 million barrels while US production remains strong and exports are now above 2 million barrels a day from US shores.
Crude stocks at Cushing, Oklahoma are down around 2.7 million barrels. Analysts were predicting a rise in inventories last week as refinery maintenance season is underway which usually equates with an increase in inventories.
With the market in backwardation, where crude prices are now higher than the future prices, traders say it's no longer profitable to store crude. This dynamic discourages storage on land and sea.
Key players in the energy sector discussed this situation in London at the Petroleum Week conference where one of the key trading houses, Vitol said much floating storage has been cleared and said it expects oil demand to remain strong and expects further drawdowns in stocks this year.
A member of Vitol's executive committee, Chris Bake agreed that production cuts from OPEC and friends, coupled with strong demand have led to "a visible track down in oil inventories."
The EIA said that imports of crude to the US are now at the lowest levels, just below 5 million barrels a day.
This is a major shift in the oil flow patterns since the EIA began keeping records back in 2001.
OPEC continues to watch production figures from all members and supporting countries and speaking in London at IP week, the UAE's energy minister and 2018 OPEC President, Suhail al Mazrouei appeared satisfied with progress, citing "unprecedented conformity levels" but said there's more to be done.
He highlighted the success of the production cut agreement and said that continued cooperation, especially with Russia will be on the table at the next formal OPEC meeting in June,
Speaking about the lack of investment in the industry in recent years, Mazrouei said a sum of US$10 trillion will be needed to guarantee oil supply to 2040.
The OPEC Secretary General, Mohammad Barkindo was in Nigeria last week and said he too was encouraged with the compliance of the group.
With commercial stocks still about 74 million barrels above the five year average he said the production cut agreement would be maintained.
Commercial oil stocks for the OECD rose in January 2018 and were still about 74 million barrels over the latest five-year average.
Barkindo said that global oil demand growth is healthy at around 1.6 million barrels a day, due to the "encouraging environment" of the current market dynamics.
While stocks may not yet be where OPEC wants to see them, independent energy commentator Cornelia Meyer says the markets are uneasy as "OECD stocks are closer to balance than they have been in a very long time."
Getting the balance right in the market will always be a challenge, but OPEC and friends are determined to stay the course.
For now, the plan is working, but producers, investors and analysts need to remain vigilant in months to come.