WTI: Downside opening up towards $ 63.50 amid rising United States supplies

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Prices also continue to be supported by the on-going OPEC-led supply cuts and the USA sanctions against Iran and Venezuela, which have helped tighten global supplies.

Iranian supply could fall further after May if, as many expect, Washington tightens its sanctions against Tehran.

On Thursday, the 11th of April 2019, both U.S. and United Kingdom crude fell more than one percent after sources had revealed that the OPEC, a 14-nation pact of petroleum exporting nations, had been giving a second thought over their production cut policy until the end of 2019. Crude oil outlook remains neutral, however, due to upcoming seasonality effects that typically boosts oil prices in addition to uncertainty surrounding further OPEC supply cuts.

"Pressure to global supplies continues to mount because of sanctions-linked problems in Iran and Venezuela and rising geopolitical risk in Libya", said Stephen Innes, head of trading at SPI Asset Management.

Venezuela pumped 960,000 bpd in March, down nearly 500,000 bpd from February, OPEC said in a report on Wednesday.

The rig count fell for the past four months as independent exploration and production companies cut spending on new drilling to focus on earnings growth instead of increased output.

The sun sets behind an oil pump outside Saint-Fiacre, near Paris, France March 28, 2019.

Venezuela's average daily production rate fell to 870,000 bpd last month, while OPEC-wide production fell by 550,000 bpd in March, the International Energy Agency said in its oil market report.

Adding to the impact of the involuntary declines, top exporter Saudi Arabia has cut production by more than it agreed under the global pact.

A fourth OPEC source said there were talks about ideas such as whether OPEC should continue with the cuts alone, a deal extension of only three months to keep Russian Federation on board or pumping more if prices rise further.

"An increase is on the table, yes, if prices went to $80 and higher", this OPEC source said. Conflict between the USA and Iran could have also helped boost oil prices considering the risk of President Trump extending Iranian restrictions.

The prospective initiative from OPEC was reportedly encouraged by the recent rally in prices and because extending its production cuts with Russian Federation and other allies could over-tighten the market (the cartel agreed with allies to withhold 1.2 million barrels per day (bpd) of crude since the start of 2019, and its output fell 550,000 bpd in March to 30.1 million bpd).

"Russia has started talks about an oil production rise as it can hardly follow the OPEC+ deal", said another Russian energy source.

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