— This is the script of CNBC's news report for China's CCTV on April 2, Thursday.
Welcome to CNBC Business Daily, I'm Qian Chen.
Oil prices paring gains in Asian trade.. after surging overnight.
Nymex WTI rose as much as 5% in the U.S. session after a smaller than expected rise in weekly U.S. stockpiles.
But hopes that ongoing nuclear talks wth Iran may yield a deal and potentially add to the supply glut is keeping a lid on prices.
Oil prices have more than halved snce the middle of last year, and its had a big impact on economies around the world - some good, some bad, as CNBC's Steve Liesman explains how much a $50 decline in oil prices will add or take away from 2015 GDP using a world map at the Wall.
So let's take a look here, some of the obvious play here: Kazakstan is in deep purple in a minus 10% GDP impact- this is from a 50 dollar decline in oil. With Russia up there as well, and then come down into Asia here- China a big beneficiary, India as well, all through eastern Africa and then you come up to the middle here to Nigeria and Niger and of course here's the Middle East, big losers.
Interesting over hewre in South America, a bit of a division- much of the countries here presumed a beneficiary despite the fact they have considerable production there, but then the north here Venezuela and Columbia are big losers.
United states comes out as a modest benficiary- 1 to 2% despite our huge oil productions happening over the past several years and what we are seeing right now is a situation where we seem to be registering all the negatives from the decline but none of the positives. And economists are saying that is going to take time. So here's the map you got here, of the world and you can see as well you've got Eastern Europe is a beneficiary- all of Europe is a beneficiary except when you go to up of course to Norway.
The drop in U.S. production last week-to 9.38 million barrels a day from 9.44 million the week earlier-is one of the few declines reported since U.S. production crossed the 9 million barrels-a-day mark in November and a sign that the shutdown of about half of U.S. rigs may be taking some toll on production.
U.S. crude inventories also rose last week to record levels for a 12th week in a row, while gasoline stocks dropped much more than expected amid a surprise jump in demand.
One factor that could come into play for the oil market is the storage level at Cushing, Oklahoma, the physical storage hub for Nymex futures.
Analysts have been watching U.S. storage capacity for signs that it is nearing a top for fear that could trigger panic selling. Cushing storage has been building steadily and is more than three-quarters full. Pressure could be alleviated on Cushing once refineries return to a higher production levels, after spring maintenance.
However, for now, all eyes are on the ongoing Iran talks.
CNBC's Qian Chen, reporting from Singapore.