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The oil slips as a rising US supply undermines the OPEC cuts



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Oil prices went away from 2019 highs on Wednesday, with increasing US supply and slowing economic growth claiming upward pressure from supply interruptions led by the OPEC producer club and from Washington's sanctions against Iran and Venezuela.

U.S. West Texas foreign crude futures beat 2019 highs of $ 56.39 a barrel on Wednesday, but had fallen back to $ 56.15 a barrel by 0523 GMT, slightly above their final settlement.

International Brent Raw Futures was $ 66.33 per barrel, down 12 cents, or 0.2 percent, from their last close, yet not far from their 2019 high of $ 66.83 a barrel from Monday.

Oil prices have been supported by supply savings led by the Oil Exporting Organization (OPEC).

OPEC member and top window exporter Saudi Arabia is expected to reduce light oil shipments to Asia in March as part of the tightening of markets.

OPEC and some non-affiliated producers that Russia agreed late last year to cut output by 1.2 million barrels per day (bpd) to prevent a large supply overflow.

"We have lowered Saudi crude oil production in line with announcements …) now assume that Saudi Arabia will produce in the first three quarters of 2019 less than the 10.31 million bpd target agreed on by OPEC's non-OPEC meeting December 7, French bank BNP Paribas said in a note. [19659004] Due to the downturns, BNP said that oil prices are expected to "rally through Q3 2019", with Brent averaging $ 73 a barrel then and WTI to $ 66 on average.

Another important oil price driver has been US sanctions on oil producers Iran and Venezuela.

Despite sanctions, Iran's commodity exports were higher than expected in January, with an average value of around 1.25 bpd, according to Refinitive Ship Tracking Data

Many analysts had expected Iran's oil exports to fall below one million bpd after the imposition of US sanctions in November November

Oppose supply cuts and so on Plans are US crude production, which increased by more than two million bpd in 2018 to a record 11.9 million bpd, thanks to booming shale oil product ion, which the Energy Information Administration said on Tuesday, was expected to continue to increase.

BNP Paribas said the high US production would bring lower oil prices towards the end of the year, with Brent dipping to an average of $ 67 a barrel in the fourth quarter and WTI at an average of $ 61.

"US oil production growth, driven by slate, will be exported in larger volumes to international markets, while the global economy is expected to experience a synchronized decline in growth," the bank said. (Reuters / NAN)


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