Oil hovers near 2019 highs amid OPEC cuts

Oil hovers near 2019 highs amid OPEC cuts, but economic slowdown weighs

Nigeria on Wednesday pledged its cooperation to reduce oil output in order to attract higher prices in the global market.

Since taking effect in January, supply cuts agreed by OPEC have helped oil prices increase to above $60 dollars a barrel, after many market commentators feared the commodity would fall below the $40 back in November a year ago. Brent gained 1.2 percent on the week. -China trade deal was beginning to emerge from talks between the two countries, sources told Reuters on Thursday.

'Willingness of the OPEC+ group to adhere with the output cut agreement will remain supportive of oil prices in the run-up to their scheduled April meeting, ' senior energy analyst at Interfax Energy Abhishek Kumar said.

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U.S. West Texas Intermediate (WTI) crude oil futures were at $57.14 a barrel at 0955 GMT, 2 cents below their last settlement, and close to a 2019 high of $57.55 reached the previous day.

The bank said that some weeks could see 4.6 million bpd of gross crude exports by year-end, topping last week's record of 3.6 million bpd.

"After the recent Fed Minutes, the US dollar has sold off, lifting crude oil on news the Fed plans to hold off on rate hikes, and balance sheet reduction", he said.

That means USA crude output has soared by nearly 2.5million bpd since the start of 2018, and by a whopping 5 millionbpd since 2013.




Still, tightening supply globally helped keep losses at bay.

In fact, the crude oil price was also boosted by United States sanction on OPEC members such as Venezuela and Iran, alongside an outage in an offshore oil field in Saudi Arabia's Safaniya, slashing output further, which used to produce 1,00,000 barrels of crude per day.

Oil prices have been driven up this year after OPEC and producer allies, known as OPEC+, agreed to cut output by 1.2 million barrels per day (bpd) to prevent a supply overhang from growing.

Oil prices bounced on Friday, as oil rigs in the United States slid this week, offsetting concerns caused by surging US oil stockpiles.

With U.S. supply surging, Goldman Sachs said it expected non-OPEC supply to grow by 1.9 million bpd this year, more than offsetting the OPEC cuts.

Trading has been lackluster with bullish traders hoping for fresh news about the U.S.

That means much will depend on demand, which Goldman said it expected to grow by 1.4 million bpd this year.

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