Oil prices up with fall in U.S. crude stocks, production

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Oil prices were mixed on Thursday after hitting 2019 highs as OPEC stressed the need to extend its production cut program past June while lowering its forecast for crude demand.

In April a year ago, the Abu Dhabi National Oil Company (ADNOC) said that it was establishing a new trading unit to "introduce and manage non-speculative trading to further maximize value from every barrel of crude oil and refined product that is produced and marketed by the company".

Iraq is committed to OPEC oil output cuts.

Two sources told Reuters that the U.S. also aims to curb Iran's crude exports by about 20% to below 1 million barrels per day (bpd) from May, likely reining in waivers for Tehran's remaining customers. Other factors that have been influencing oil prices include the current blackout in Venezuala alongside the state of the ongoing trade talks between Washington and Beijing.


OPEC, Russia and other non-OPEC producers, an alliance known as OPEC+, are reducing output by 1.2 million bpd from January 1 for six months.

The U.S.' crude oil production was estimated to average 12.4 million bpd this year and 13.2 million bpd next year, according to the EIA's report in February.

Investors will closely watch the weekly change in the U.S.' crude oil production and inventories that will be released by the EIA at 1430 GMT on Wednesday.

An OPEC source told Reuters on Tuesday OPEC would stick to its agreement to tighten crude supplies regardless of Trump's recent tweet.


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

EIA's data also showed that on the exports side, USA crude oil exports increased while domestic production rose as well.

Iraq is committed to the deal and working to stabilise markets, and is producing slightly more than 4.5 million bpd, below its full capacity of almost 5 million, Ghadhban said. Saudi Arabia plans to cut its crude oil exports in April to below 7 million barrels per day (bpd), while keeping its output well below 10 million bpd, a Saudi official said on Monday, as the kingdom seeks to drain a supply glut and support oil prices.

"With OPEC's cuts in full-swing. persistent supply issues and a deteriorating picture on Venezuela, oil is looking well supported", said Jasper Lawler, head of research at futures brokerage London Capital Group.


U.S. West Texas Intermediate (WTI) crude futures were at $58.38 per barrel, up 12 cents, or 0.2 percent, from their last settlement, and also close to November 2018 highs reached the previous day.

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