USA oil prices dip on rising crude inventories, record output

USA oil prices dip on rising crude inventories, record output

USA oil prices dip on rising crude inventories, record output

"Also underpinning the market is strong adherence to the OPEC-led supply cuts during January", reports

Moreover, Venezuela is struggling to export oil because of U.S. sanctions in support of "interim president" Juan Guaidó, who is challenging the incumbent Hugo Chávez.

WTI prices were $46.54 per barrel at the start of the year, rising to current levels in part on geopolitical concerns about Venezuela, as well as on the possibility of an economic slowdown in China.

"It would seem that the market is really not too anxious yet about the potential loss of Venezuelan barrels", said analysts at JBC Energy in a report.

A day after the American Petroleum Institute disappointed oil bulls by reporting an estimated inventory build across the board, the Energy Information Administration deepened the mood by saying US crude oil inventories added 1.3 million barrels in the week to February 1. That's down from 10.643 million bpd in December, representing a cut that was 70,000 bpd deeper than targeted under the OPEC-led pact to balance the market and support prices.

As of 7:35 a.m. EST, West Texas Intermediate front-month crude future prices fell 0.9 percent to $53.53 per barrel, while Brent future prices fell 0.5 percent to $62.36 per barrel as of the same time.

Still, some analysts were relieved that United States crude oil inventories only rose by 1.3 million barrels in the week to February 1, according to the EIA, compared with expectations for an increase of 2.2 million barrels.

Brent crude oil futures were last down $0.12 at $62.57 a barrel by 1022 GMT, while United States crude futures were down $0.07 at $53.94 a barrel.

USA crude futures were down 75 cents, or 1.39 percent, at $53.26.

U.S. President Donald Trump last week said he would meet his Chinese counterpart Xi Jinping in the coming weeks to try to settle the dispute.

OPEC and its allies will probably extend their oil-cuts agreement later this year to keep prices at "comfortable" levels, according to Azerbaijan's energy minister.

At 447.2 million barrels, USA crude oil inventories are about 6 percent above the five year average for this time of year, the EIA reported.

TransCanada Corp.'s Keystone pipeline and Enbridge Inc.'s Platte pipeline were shut Wednesday to investigate a possible oil spill in Missouri.

More stringent sanctions on Venezuela that bar companies that do business with PDVSA from accessing the USA financial system resemble Washington's measures on Iran, ANZ Banking Group said. Both lines carry Canadian crude to the U.S.

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