Oil nears $70 as Opec tightens supply, hopes for trade deal grow

Oil nears $70 as Opec tightens supply, hopes for trade deal grow

Oil nears $70 as Opec tightens supply, hopes for trade deal grow

"I don't think this is going to be a back-breaker for the bulls by any stretch of the imagination". As of just after 10am BST, the price of brent crude was at $69.78 per barrel.

Nigeria 2019 budget is based on oil price of $66 per barrel with an estimated production of 2.2 million barrels per day.

US crude oil stockpiles soared unexpectedly last week as imports climbed and production edged higher to a new record, the Energy Information Administration said on Wednesday.

Earlier this week, a survey from Reuters said OPEC's oil production in March 2019 fell to its lowest level since February 2015.

OPEC-led oil cuts, speculation over additional USA sanctions against Iran and reports about Venezuela halting operations at a key crude terminal supported oil and limited its downside.

WTI Crude Oil was up 0.65 percent at $61.99 per barrel after rising above $62 for the first time since early November.

OPEC and its allies will probably extend their output cuts of 1.2 million barrels a day into the second half, but compliance could be significantly lower, DNB Markets analyst Helge Andre Martinsen said in an interview in Houston.

Oil prices have been supported for much of 2019 by efforts by the Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated allies like Russian Federation, known as OPEC+, who have pledged to withhold around 1.2 million barrels per day (bpd) of supply this year.

The identity of the three countries was not revealed by the source.

-China trade negotiations and positive Chinese and US factory activity data in recent days has also helped market sentiment by easing fears about weakening global oil demand.

USA crude stocks rose unexpectedly last week, while gasoline and distillate inventories declined, the American Petroleum Institute said late on Tuesday.

A day later, the EIA reinforced the build, predicting that oil inventories had increased by 2.8 million barrels.

The United States is likely to renew waivers to sanctions for most countries buying Iranian crude, including the biggest buyers China and India, in exchange for pledges to cut combined imports to below 1 million barrels per day.

U.S. crude oil refinery inputs increased during the week ending March 29, the U.S. Energy Information Administration (EIA) said Wednesday.

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