Oil slips on API report of USA inventory rise

Oil slips on API report of USA inventory rise

Oil slips on API report of USA inventory rise

US crude oil inventories C-STK-T-EIA climbed by 1.3 million barrels in the week that ended February 1, to 447.21 million barrels, data from the Energy Information Administration (EIA) showed on Wednesday. "That said, if the other OPEC countries fail to offset this outage, the oil market could quickly become undersupplied, driving the price up".

A flotilla loaded with Venezuelan oil has formed in the Gulf of Mexico, some holding cargoes bought ahead of the latest US sanctions on Venezuela and others whose buyers are weighing who to pay. Still, "more hard work is needed to turn this market unreservedly bullish".

January 2019 represents one of oil's best monthly performances on record.

Further price support is provided by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) to tighten the market.

Moreover, Venezuela is struggling to export oil because of United States sanctions in support of "interim president" Juan Guaidó, who is challenging the incumbent Hugo Chávez. -China trade deal. An economic slowdown in the Euro Zone is now a concerns after German industrial output unexpectedly fell in December for the fourth consecutive month. The contract increased 35 cents to $54.01 on Wednesday.

Brent crude, the global benchmark, slipped 49 cents to $61.49 a barrel as of 1053 GMT.

The daily trend is up for both WTI and Brent crude oil, however, momentum is starting to shift to the downside.

Meanwhile, average weekly US crude oil production remained at the record 11.9 million barrels per day (bpd) C-OUT-T-EIA it reached in late 2018.

According to a separate report by FXDailyReport analyst Katrina Ang, analysts expectations were for an inventory expansion of up to 2.2 million barrels. USA crude output stayed at a record-high 11.9 million barrels a day. They closed down 1.3 percent on Monday, after earlier touching their highest since November 21 at $55.75 a barrel.

U.S. President Donald Trump last week said he would meet his Chinese counterpart Xi Jinping in the coming weeks to try to settle the dispute. Energy information provider Argus Media, said producer cuts will eventually help level oil prices again as 2019 wears on.

Average weekly crude oil production remained at the record 11.9 million barrels per day (bpd) it reached in late 2018.

TransCanada Corp.'s Keystone pipeline and Enbridge Inc.'s Platte pipeline were shut Wednesday to investigate a possible oil spill in Missouri.

The move ratcheted up pressure on Maduro to cede power to National Assembly leader Juan Guaido, who the US and European allies have recognized as Venezuela's rightful president. The sanctions aim to block USA refiners from paying into PDVSA accounts controlled by Venezuelan President Nicolas Maduro.

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