Published: Fri, March 15, 2019
Money | By Ralph Mccoy

Oil Rises Strongly Supported by Cuts, Sanctions

Oil Rises Strongly Supported by Cuts, Sanctions

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

A widespread power outage in Venezuela that has stalled crude exports from the OPEC-member nation, which has already seen reduced shipments from USA sanctions, helped to tighten the market.

US crude oil production is expected to grow slower than previously expected in 2019 and average about 12.30 million barrels per day (bpd) the US Energy Information Administration (EIA) said on Tuesday.

United States supplies dropped more than expected said the EIA.

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

OPEC sources have said an extension of the supply-cutting pact is the likely scenario. "US sanctions on Venezuelan petroleum products have cemented support for oil prices", said Benjamin Lu of Singapore-based brokerage Phillip Futures.

Despite this strong compliance, market indicators followed by OPEC still suggest a glut could appear.

Judge to be assigned to Jussie Smollett case during court hearing today
Smollett is expected to enter his plea before Watkins after a short recess. Fox cut Smollett's character in " Empire " after he was arrested.

Aunt Becky Memes & Jokes Hit the Internet
This next meme references a specific clip from Full House when Uncle Jesse looks at SAT test answers in DJ Tanner's class. Which is probably why social media has been relentlessly creating and sharing memes about the allegations against her.

Richard Neal slams Trump budget's proposed Medicare cuts
The Trump administration predicts a savings of $130 billion over the next decade if Congress enacts the proposal. It would have capped federal spending on the entire program and left millions of people uninsured.

In the report, OPEC said its oil output fell by 221,000 bpd month-on-month to 30.55 million bpd in February. A recent EIA forecast also showed that the United States would become a net exporter of crude oil and petroleum products on a monthly basis in 2019 and on an annual basis in 2020.

For 2020, the government said it expected USA crude oil demand to rise by 220,000 bpd to 21.03 million bpd, unchanged from previous forecasts.

Brent crude oil futures were at $67.15 per barrel at 0126 GMT, 8 cents below their last close, but still within a dollar of the $68.14 2019-high reached the previous day.

Brent was up 98 cents, or 1.47 percent, to $67.63 per barrel, while West Texas Intermediate climbed $1.50, or 2.64 percent, to $58.37 per barrel.

Sources said Novak would be there on Sunday, along with Saudi Energy Minister Khalid Al Falih.

"With the refiners starting to slowly come out of maintenance, OPEC cuts starting to kick in, and Venezuelan supplies, you're probably now looking at a future with more draws in the coming weeks", said Phil Flynn, analyst at Price Futures Group in Chicago.

While it may be just as problematic as the notion of global oversupply that dominated analytical fears until recently, the perception of a tightening market continued to result in gains for crude prices, with USA oil settling a substantial 2.4 percent higher on Wednesday.

Like this: