Economy

Oil prices rise on ongoing OPEC-led supply cuts

Oil prices rise on ongoing OPEC-led supply cuts

The report came on the same day that Secretary of State Mike Pompeo was due to meet with senior USA oil executives at the CERAWeek by IHS Markit conference in Houston to discuss boosting crude exports and advancing America's position as a global energy powerhouse, according to people with knowledge of the meeting.

Brent crude futures were at $65.04 per barrel, up 30 cents, or 0.5 per cent.

Oil prices have been pushed up this year by supply cuts led by the Middle East dominated producer group of the Organization of the Petroleum Exporting Countries (OPEC). The EIA forecasts 2019 US crude production of 12.3 million barrels a day, down 0.9% from the February forecast.

Oil prices rose on Tuesday, as OPEC's de facto leader Saudi Arabia appeared to deepen the group's supply cuts aimed at tightening markets, although gains were capped by the ongoing surge in USA supply and worries over the global economy.

According to reports, most of the South American country has been without power for six days, leaving hospitals struggling to keep equipment running, food rotting in the tropical heat and exports from the country's main oil terminal stranded.

"Failures in the electrical system". This report is expected to show that inventories rose by 2.9 million barrels.

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"The United States accounts for 70 percent of the total increase in global capacity to 2024, adding a total of four mb/d (million barrels per day)".

The rise in oil prices this year has been tempered by concerns over oil consumption following the U.S.

Prices were also supported by US energy services firm Baker Hughes' latest weekly report showing the number of rigs drilling for new oil production in the United States fell by nine to 834. However, these are only likely to offset the OPEC-led supply cuts and the effect of US sanctions against Iran and Venezuela.

"It was the first time that the United States in the last two decades was the No. 1 driver of oil consumption growth".

The slowdown in drilling points to more timid output growth going forward, but because the overall drilling level remains relatively high despite the recent decline, many analysts still expect US crude output to rise above 13 million bpd soon.