Oil falls 1 percent as supply concerns fade

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The Organization of the Petroleum Exporting Countries and 10 partner producers outside the cartel agreed late previous year to hold back crude output by 1.2 million barrels a day for the first half of 2019, in an effort to soak up that global supply glut and rebalance the market.

Oil steadied on Thursday as growing expectations that global supply could fall significantly short of demand this year lent support, offsetting the negative impact of a rise in US inventories.

Guaido's team is planning for a post-Maduro government with an emergency scheme to supply fuel domestically, given widespread shortages across Venezuela, Goicoechea said.

Following a USA 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. The surge comes shortly after Washington slapped sanctions on the Venezuelan state oil company PDVSA.

Technically, the crude oil price remains within the rising channel in place on the chart throughout this year so far and its climb could well extend towards the channel resistance line, now around $56.30.

USA crude oil inventories 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.

Global benchmark April Brent LCOJ9, +0.90% added 71 cents, or 1.2%, to $62.69 a barrel on ICE Futures Europe, after tapping a low of $61.05.

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West Texas Intermediate crude for March delivery slipped 0.4 percent to $53.81 a barrel on the New York Mercantile Exchange as of 10:50 a.m. London time.

Russia has been in full compliance with its pledge to gradually cut its oil production, Russian Energy Minister Alexander Novak said in a statement on Monday, adding that production fell by 47,000 barrels per day (bpd) in January from October.

“Looking ahead, the 2019 demand outlook for oil is not great, while the prospects of increased shale supply and competition elsewhere could keep the pressure on prices, ” he said. 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 producers' alliance, known as OPEC+, began cutting production from last month to avert a new supply glut.

Market participants are also watching for developments surrounding the U.S.

Concern about weaker global economic growth and the trade dispute between the United States and China have also weighed on sentiment. Both lines carry Canadian crude to the U.S.

US President Donald Trump said in his State of the Union address that a trade deal was possible with China.

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