Oil prices rise amid broad market rally, OPEC supply cuts


The US could overtake Russian Federation and Saudi Arabia as the world's top oil exporter by 2024, the International Energy Agency (IEA) has predicted.

Crude oil prices rose marginally on Monday, driven by comments from Saudi Arabian oil minister, Khalid al-Falih, that an end to the Organisation of Petroleum Exporting Countries (OPEC)-led supply cuts was unlikely before June.

"Annual gains will boost the United States to levels never seen in any country, in excess of maximum capacity in both Russian Federation and Saudi Arabia", said the IEA in its five-year.

Global benchmark May Brent crude, +0.81 per cent gained 95 cents, or 1.5 per cent to $66.69 a barrel on ICE Futures Europe, after the contract registered a weekly rise of one per cent on Friday.

U.S. West Texas Intermediate (WTI) crude futures were at $57.12 per barrel, up 25 cents, or 0.5 percent, from their last settlement.

Oil prices rose on Monday, lifted by comments from Saudi oil minister Khalid al-Falih that an end to OPEC-led supply cuts was unlikely before June and a report showing a fall US drilling activity.

Saudi Arabia, seeking to drain a supply glut and support prices, plans in April to keep its oil output well below the level required of it as part of an OPEC-led supply cutting deal, a Saudi official confirmed on Monday.

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According to an annual five-year outlook report by the International Energy Agency, the U.S. became the world's top oil producer in 2018, and is set to become the world's biggest oil exporter over the next five years.

OPEC member United Arab Emirates (UAE) said on Sunday it would continue to meet its obligations to cut supply under the producer agreement.

In addition, Venezuela's state-run oil firm PDVSA has been unable to resume crude exports from its primary port since a power outage last week, people familiar with the matter said on Monday.

Sources recently said the most likely scenario is that the current supply cuts will be extended in June but much depends on the extent of U.S. sanctions on OPEC members Iran and Venezuela.

At least partly offsetting OPEC efforts to tighten the market and disruptions like Venezuela is a surge in US oil supply.

The supply growth is a positive thing in the IEA's view, as oil demand around the world could increase by up to 1.2 million barrels per day over the next five years. In February, US crude oil exports hit an all-time high, with shipments amounting to over 3.6 million barrels a day.

The first report, from the American Petroleum Institute, an industry group, is due at 4:30 p.m. EDT (2030 GMT), followed by the government's official supply report on Wednesday.