Oil prices lower as inventory build only modest

Oil prices lower as inventory build only modest

Oil prices lower as inventory build only modest

Prices have been buoyed by a new round of supply cuts from the Organization of the Petroleum Exporting Countries and its allies that began in January.

"We've been turning the heat up on the regime", Mnuchin said Wednesday, touting the effectiveness of fresh sanctions that President Donald Trump's administration imposed January 28.

Though the United States published robust jobs data last week, global markets remain nervous after China reported the lowest annual economic growth in almost 30 years in January.

Short-term, the market is getting a boost from USA sanctions on Venezuelan oil exports.

Following a US decision to impose sanctions on Venezuela's oil industry last week, Guaido and the Trump administration have sought to appoint a new board of directors for Citgo. "That said, if the other OPEC countries fail to offset this outage, the oil market could quickly become undersupplied, driving the price up".

Brent crude futures dropped 24 cents, or 0.38 percent, to settle at $62.51 a barrel. The contract increased 35 cents to $54.01 on Wednesday.

USA crude inventories rose by 2.5 million barrels last week and gasoline stocks also increased, the American Petroleum Institute said. Output from OPEC's 14 current members fell by 930,000 barrels a day to 31.02 million, according to a Bloomberg survey.

More news: Super Bowl TV ratings hit 10-year low for Patriots win

Lower OPEC output and hopes of some progress over the US-China trade dispute have helped Brent prices recover to around US$60 per bbl, although the outlook on oil demand remains subdued. Brent reached $63.63 a barrel, the highest since December 7, while WTI climbed to $55.75 a barrel, the strongest since November 21.

The fund would receive income accrued by state-run oil firm PDVSA's U.S. unit Citgo Petroleum Corp since last month, when U.S. President Donald Trump recognized opposition leader Juan Guaido as Venezuela's legitimate head of state, Carlos Paparoni said in an interview.

At 447.2 million barrels, US crude oil inventories are about 6 percent above the five-year average for this time of year, the administration said.

Traders are watching how long a partial closure of the Keystone oil pipeline would last after the discovery of a possible leak in the area of St. Louis 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.

More stringent sanctions on Venezuela that bar companies that do business with PDVSA from accessing the USA financial system resemble Washington's measures on Iran, ANZ Banking Group said. "Around a third of Venezuela's exports head to the USA, as such, we expect Venezuelan exports to quickly fall by 300,000 barrels per day (bpd) to around 700,000 bpd", ANZ bank said on Thursday.

Related news



[an error occurred while processing the directive]