Oil Rises Strongly Supported by Cuts, Sanctions

EIA: The US imports and exports substantial volumes of petroleum

Oil Rises Strongly Supported by Cuts, Sanctions

But the Venezuelan situation may change, especially considering USA president Donald Trump's desire for gasoline prices to stay at low levels for the benefit of American motorists: Secretary of State Mike Pompeo told media on Wednesday that "every option is on the table to deliver to the Venezuelan people the democracy they deserve; and then ultimately we'll build back an economy where they can again have the wealth that they have under their own feet". -China trade talks and global economic growth weighed on oil prices.

International Brent crude oil futures were at $66.93 a barrel at 0039 GMT, up 26 cents, or 0.4 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude oil futures were at $58.55 per barrel, down 6 cents from their last settlement, and not far off their 2019-high of $58.74 from the previous day.

In a monthly report, the Organization of the Petroleum Exporting Countries said 2019 demand for its crude would average 30.46 million barrels per day, 130,000 bpd less than forecast last month and below what it is now producing.

Oil prices have risen since the beginning of this year thanks to supply cuts led by OPEC.

"That's probably a reflection of the price fluctuation we've seen in today's prices", said Phil Streible, senior commodities strategist at RJO Futures in Chicago.

The upbeat tone in crude oil prices remains firm in the second half of the week, pushing the barrel of WTI to fresh yearly tops beyond the $58.00 mark per barrel.

"The result has been a growing role for the United States in world petroleum trade", said EIA.

A report that a meeting between the USA and Chinese presidents to resolve a trade dispute had been delayed sent prices briefly down earlier.

Data showing China's industrial output grew 5.3 percent in January and February, the slowest pace of expansion in 17 years, also limited gains, Flynn said.

The up move in prices are also propped up by declining U.S. crude oil supplies, as per yesterday's weekly report by the DoE.

According to industry and trading sources who spoke to Reuters this week, SOMO has moved to scrap two joint ventures for trading as it aims to boost its crude oil sales on its own and get the trading revenues for itself.

The country's main oil terminal resumed shipments after a prolonged blackout.

The Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated allies such as Russian Federation - known as the OPEC+ alliance - pledged to withhold 1.2 million barrels per day (bpd) in crude supply from the start of the year to tighten markets and prop up prices.

Latest News