Published: Thu, March 14, 2019
Finance | By Loren Pratt

Oil rises to $67 on cuts to Saudi, Venezuelan exports

Oil rises to $67 on cuts to Saudi, Venezuelan exports

USA crude oil output will rise almost 2.8 million bpd, growing to 13.7 million bpd in 2024 from an average of just under 11 million bpd in 2018, the IEA said, making the United States by far the biggest oil producer in the world.

U.S. West Texas Intermediate (WTI) crude oil futures were at $56.99 per barrel at 0012 GMT, up 20 cents, or 0.4 percent, from their last settlement.

Oil prices rose on Wednesday, pushed up by ongoing supply cuts from producer cartel OPEC and USA sanctions against Iran and Venezuela.

Both benchmarks settled at their highest levels since mid-November.

USA crude stocks also fell unexpectedly last week, data from the American Petroleum Institute showed on Tuesday, in a good sign for oil demand as supply from various producers was being curbed. "It looks very supportive as refiners come out of maintenance". It projected that global oil consumption will increase by about 1.2 million barrels a day, or 1.2 percent, each year to 2024.

On Tuesday, the EIA revised down its estimate for domestic crude production growth in 2019. In particular, Saudi Arabia's oil production in February fell to 10.136 million bpd, a Saudi industry source told Reuters on Friday, down from 10.24 million bpd in January.


Exports from Venezuela's main oil terminal have been stranded as its worst blackout on record has left parts of the country without power for roughly a week.

Oil prices have been pushed up this year by supply cuts led by the Middle East-dominated Organization of the Petroleum Exporting Countries.

India has already built 5.33 million tons of underground reserves in three locations, which can meet 9.5 days of the country's oil needs.

Saudi's participation in the Indian Strategic Petroleum Reserve program was discussed at a meeting between the kingdom's Energy Minister Khalid Al-Falih and his Indian counterpart Dharmendra Pradhan in New Delhi on Saturday, according to a government statement on Sunday.

"I expect to see WTI hitting $60 a barrel in the next couple of weeks as inventories in the USA are impacted by the lack of Venezuelan imports", said Andrew Lipow, president of Lipow Oil Associates in Houston.

"The ministers reviewed various Saudi investment proposals in the Indian oil and gas sector, including the urgent steps to be taken to expedite the implementation of the first joint venture West Coast Refinery and Petrochemical Project in Maharashtra, estimated to cost the U.S. $44 billion, which will be the largest greenfield refinery in the world", a government statement said on Sunday.

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