Saudi oil cuts deeper than promised: IEA | ABS-CBN

Ann Santiago
April 12, 2019

"The blackouts are an additional challenge for Venezuela's oil sector, already set back by economic collapse, corruption, mismanagement and - more recently - by USA sanctions", the Paris-based IEA said in its monthly report.

Last month, total OPEC-14 preliminary crude oil production averaged 30.02 million barrels per day (mb/d), a decrease of 534,000b/d over the previous month.

Oil prices fell on Thursday, pressured as U.S. crude stockpiles surged to their highest levels in nearly 17 months amid record production and as economic concerns cast doubt over growth in demand for fuel.

U.S. West Texas Intermediate crude oil futures rose 64 cents, or 1%, to $64.62 per barrel, holding just below their strongest level since November.

Saudi Arabia has slashed its oil production by more than promised as part of a pact to boost oil prices, the International Energy Agency said Thursday, while warning of mixed signals for global demand.

A supply cut led by the OPEC (Organization of Petroleum Exporting Nations), a 14-nation pact of oil exporting nations headquartered in Vienna, had resulted in a rally of more than 30 percent this year for the United Kingdom crude despite steep economic slowdown.

The prices of other crudes - Brent, WTI and OPEC Basket also rose from $69 to $70.64, $62.50 to $63.94 and $69.50 to $70.33 respectively, yesterday.

The Dutch bank said the reduction was not only down to voluntary supply cuts, which the group started this year to prop up prices, but also involuntary curbs from Venezuela and Iran - which are exempt from the OPEC cut pact - due to US sanctions.

Global oil demand is estimated to average 99.91 million bpd this year, compared with 98.70 million bpd in 2018, OPEC said.

"U.S. crude oil inventories remain stubbornly high", it added.

The group forecasts U.S. crude production to rise by 1.46 million bpd in 2019 to 12.42 million bpd.

Production cuts and sanctions weigh on supply.

But in its third downgrade on global growth since October, the International Monetary Fund warned on Tuesday that the global economy was slowing more than expected and a sharp downturn may be looming.

USA crude stocks rose by 4.1 million barrels in the week to April 5, to 455.8 million barrels, data from industry group the American Petroleum Institute showed on Tuesday. The forecast cut 0.2 percentage point from the IMF's outlook in January.

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