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

Embedded Image

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.

Related News:



Most liked

From Texas to Georgia, South braces for storms and potential tornadoes
The system will begin to move through Alabama overnight and is expected to reach Georgia by Sunday morning. Violent weather is unlikely to be as widespread as Saturday, but some of Sunday's storms may be intense.

Mitch Marner faked out Tuukka Rask so badly on this goal
The Toronto Maple Leafs visit the Boston Bruins in the Eastern Conference first round with a 1-0 lead in the series. Tavares scored into an empty net with 1:19 remaining in the third period for the 4-1 final. "Too many turnovers.

LEGO Star Wars Animation Panel
Favreau also says the show will not only satisfy longtime fans but introduce a new generation to the galaxy far, far away. We follow the travails of a lone gunfighter in the outer reaches of the galaxy far from the authority of the New Republic.

The Samsung Galaxy A80 Has a Cool Spinning Selfie Digicam
Meanwhile, Samsung at it Galaxy A event in Bangkok, launched the Galaxy A80 with a slider mechanism and a rotating 48MP camera. It is powered by Qualcomm Snapdragon 675 chipset with an octa-core CPU and is backed by 6GB of RAM and 128GB onboard storage.

Normal for title-chasing Liverpool to feel heat - Chelsea's Sarri
Liverpool led Manchester City by two points heading into their respective fixtures against Chelsea and Crystal Palace . Mo Salah was a member of the Chelsea team that day.

Chevron vaults into new league on $33B Anadarko acquisition
If approved, Chevron said, it plans to boost its annual share buyback program to $5 billion from $4 billion. Anadarko shares jumped 32 percent, reflecting the offer's 39 percent premium over Thursday's close.

Brendan Rodgers hopes Leicester learn from Newcastle defeat
Matt Ritchie burst away from Ricardo Pereira on the left wing and whipped in a fine cross that Perez met in front of Wes Morgan . With 38 points on the board, Rafael Benitez has steered Newcastle to near-certain safety, although his future remains in doubt.

Three dead in horrific plane crash into helicopter near Mount Everest
Hoards of people gathered around the aircraft wreckage following the crash as debris was strewn on the ground. It is also popular as Lukla is the place where most people begin to climb the Mount Everest Base Camp.

Global court judges reject Afghanistan investigation
Human Rights Watch called the court's decision "a devastating blow for victims who have suffered grave crimes without redress". President Donald Trump said that it was "a major worldwide victory, not only for these patriots, but for the rule of law".

5G ramp up: US unveils plans to speed up 5G wireless deployment
Trump acknowledged that he considered such a plan - opposed by the FCC and others - but ultimately backed away from it. The president boasted that by the end of the year, 92 markets in the US will support 5G compared to 48 in South Korea.

SpaceX launches mega rocket year after debut with sports auto
Built by Lockheed Martin , Arabsat 6A is the largest and most powerful commercial satellite Lockheed martin has ever produced. NASA's Saturn V rockets, used for the Apollo moon shots, are the all-time launch leaders so far in size and might.

Indonesia lifts tsunami warning after magnitude 6.8 quake off Sulawesi
The US Geological Survey (USGS) confirmed the 6.8 magnitude quake hit on Friday afternoon at a depth of 17 kilometres. Gina Saerang of North Sulawesi's capital Manado said on social media the quake was "strong and long lasting".

Messenger to Move Back to the Original Facebook App
Although it could change over time to become just as bloated and overstuffed with features as the spin-off app in time . The app is being redesigned by the developers and they are experimenting with the new features of the app.

Facebook, WhatsApp and Instagram are down again
The last major outage was on 14 March 2019 where Facebook , Instagram, WhatsApp and Oculus platforms are down worldwide. At the time of writing, Facebook, WhatsApp and Instagram representatives are yet to acknowledge the outage on Twitter.

'Avengers: Endgame' Clip: Surviving Superheroes Split Up to Beat Thanos
This is the first we're hearing about teams, but it sounds like the heroes who survived the snap are splitting up in Endgame . Obviously, the Russo brothers were just trying to protect the title, as leaks in the entertainment world are constant.