Opec cuts send oil on its way to third weekly increase

Opec cuts send oil on its way to third weekly increase

Opec cuts send oil on its way to third weekly increase

However, U.S. crude oil production C-OUT-T-EIA rose by more than 2 million bpd in 2018, to a record 11.9 million bpd.

Last year, U.S.net imports of crude oil and petroleum product are estimated to have dropped to an average of 2.4 million bpd, from an average of 3.8 million bpd in 2017.

Brent for March settlement advanced 46 cents to $61.64 a barrel on the London-based ICE Futures Europe exchange.

Non-OPEC oil production growth is set to slow in 2019, Trend reports citing the International Energy Agency (IEA).

At the moment the United States has no intention of granting any further sanction waivers to Iran crude oil buyers. Economists are expecting a draw of -1.4 million barrels in crude oil inventories which is sort of bullish.

By Carlos Caminada and Alex Nussbaum Investors are the most optimistic on oil in two months as the worst fears that roiled markets at the end of the year start to dissipate. Bloomberg News reported China proposed a six-year shopping binge for American goods, diminishing concerns about a brake on economic growth.

But crude fell towards $50 at the end of 2018 due to an economic slowdown and rising USA supply, prompting producer group OPEC to cut output in an effort to keep prices above $60.

The data, however, showed that the annualized fourth-quarter growth rate slowed to 6.4 percent, as expected.

Saudi Arabia has said its output will decline even further this month as the kingdom attempts to avoid an accumulation of excess oil inventories.

Earlier in the week, Saudi Energy Minister Khalid Al-Falih said he's confident the cuts will have a "strong impact" on the market.

The Organization of the Petroleum Exporting Countries (OPEC) in its monthly market report cut its forecast for the average demand for its crude in 2019 to 30.83 million bpd, down 910,000 bpd from the 2018 average.

With the rig count stalling, last year's growth rate is unlikely to be repeated in 2019, although most analysts expect annual production to average well over 12 million bpd, making the United States the world's biggest oil producer ahead of Russian Federation and Saudi Arabia.

Indeed, Tamar Essner, director of energy and utilities at Nasdaq Corporate solutions, called the level of demand "The most unknown question for the oil markets for 2019.people are really anxious about these red flags in China in terms of auto sales coming down, retail sales coming down, and they're looking at that and saying maybe this is a leading indicator - that demand might come down in the future".

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