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Oil Rises Strongly Supported by Cuts, Sanctions

Oil Rises Strongly Supported by Cuts, Sanctions

Thursday, 14 March, 2019 - 11:00
An oil pump is seen operating in the Permian Basin near Midland, Texas, US on May 3, 2017. REUTERS/Ernest Scheyder
London- Asharq Al-Awsat
Oil prices rose yesterday, driven by OPEC's current production restrictions and US sanctions against Iran and Venezuela.

By 15:07 GMT, the crude Brent for the world benchmark was $ 67.22 a barrel, an increase of 55 cents or 0.82 percent over the previous closing. US West Texas Intermediate rough futures were $ 57.89 per barrel, an increase of $ 1.02, or 1.79 percent, compared to the previous settlement price.

Oil prices have risen since the beginning of this year thanks to supply cuts led by OPEC. Market shortages have been exacerbated by US sanctions on oil exports by OPEC members Iran and Venezuela.

The National Bank of Australia said the outlook for the oil market was mixed because there were downside risks to prices due to concerns about economic growth and strong growth in US supply, while the cutbacks in OPEC declined and the US imposed sanctions on Iran and Venezuela.

The US Energy Information Administration said late Tuesday that crude oil production in the United States is expected to grow more slowly than expected in 2019, averaging around 12.30 million bpd.

Production is expected to increase 1.35 million bpd compared to the previous year, but will grow more slowly than the previous forecast of 1.45 million bpd. The Energy Information Administration expects production to increase by 2020 by 730,000 barrels per day to 13.03 million barrels per day, an increase that is less than the expected 790,000 barrels per day.

Forecasts slowed US production to a record of 13 million barrels per day (bps) until the third quarter of 2020, instead of the second quarter of previous forecasts.

The United States is now & # 39; the world's largest oil producer thanks to the oil-rock revolution that it is going to form by 2020 a net exporter of crude and refined products. US crude oil demand in 2019 is expected to rise by 360,000 barrels to 20.81 million barrels per day, a former Energy Information Administration (EIA) for an increase of 350,000 barrels per day.

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

The US Petroleum Institute said Tuesday that crude oil stocks in the United States unexpectedly fell last week, while gasoline stocks fell and distillate stocks increased. In the week ending March 8 to 449 million barrels, raw stocks fell by 2.6 million barrels, compared to analysts' forecasts for an increase of 2.7 million barrels.

Raw stocks at the Kacheng delivery office in Oklahoma fell by 1.1 million barrels, the institute said. Data from the Petroleum Institute showed that crude oil consumption increased by 29,000 bpd. Petrol stocks fell by 5.8 million barrels, compared to analysts' forecasts in a 2.5 million barrel survey at Reuters.

Data from the Petroleum Institute showed that distillate stocks, including diesel and fuel oil, increased by 195,000 barrels, compared to a forecast of 1.9 million barrels. Crude oil imports to the US fell last week by 523,000 bpd to 6.4 million bpd.

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