Oil&nbsp;prices&nbsp;on Monday extended their decline from an early January peak above $70 as the spectre of excess supplies loomed over the market after the spreading <a href="https://www.wionews.com/world/china-inflation-rises-as-coronavirus-disrupts-supply-chains-279720">coronavirus&nbsp;</a>outbreak hit&nbsp;demand&nbsp;in&nbsp;<a href="https://www.wionews.com/world/china-inflation-rises-as-coronavirus-disrupts-supply-chains-279720">China</a>, the world's largest&nbsp;oil&nbsp;importer.

Brent crude&nbsp;hit a low of $53.63 a barrel and was at $54.09,&nbsp;down 38 cents. US&nbsp;West Texas Intermediate fell 38 cents to $49.94 a barrel after striking a low of $49.56.

Also read:<a href="https://www.wionews.com/world/china-inflation-rises-as-coronavirus-disrupts-supply-chains-279720"> China inflation rises as coronavirus disrupts supply chains</a>

Worries&nbsp;over supply were not alleviated on Friday when Russia said it need more time to decide on a recommendation from a technical committee that has advised the <a href="https://www.wionews.com/business-economy/latest-business-news-oil-falls-1-as-demand-fears-outweigh-hopes-for-bigger-opec-cuts-278841">Organization of the Petroleum Exporting Countries</a> (<a href="https://www.wionews.com/business-economy/latest-business-news-oil-falls-1-as-demand-fears-outweigh-hopes-for-bigger-opec-cuts-278841">OPEC</a>) and its allies to cut production by a further 600,000 barrels per day.

Russia Energy Minister Alexander Novak said Moscow needed more time to assess the situation, adding that US&nbsp;crude production growth would slow and global&nbsp;demand&nbsp;was still solid.

Also read: <a href="https://www.wionews.com/world/death-toll-in-chinas-coronavirus-crosses-900-as-who-sends-team-to-investigate-279657">Death toll in China's coronavirus crosses 900 as WHO sends team to investigate</a>

The proposal for the further cuts "failed to alleviate the pressure on&nbsp;oil, in part because the proposal has yet to be formally discussed by OPEC ministers and because Russia continues to push back against further cuts," said Stephen Innes, chief market strategist at AxiCorp.

"If the cartel fails to reach an agreement, there will be more pain to come in&nbsp;oil&nbsp;(on the) downside."

Oil&nbsp;traders also said they are concerned the proposed reduction would not be sufficient to tighten global markets.

Oil prices on Monday extended their decline from an early January peak above $70 as the spectre of excess supplies loomed over the market after the spreading coronavirus outbreak hit demand in China, the world's largest oil importer.

Oil prices on Monday extended their decline from an early January peak above $70 as the spectre of excess supplies loomed over the market after the spreading coronavirus outbreak hit demand in China, the world's largest oil importer. Brent crude hit a low of $53.63 a barrel and was at $54.09, down 38 cents. US West Texas Intermediate fell 38 cents to $49.94 a barrel after striking a low of $49.56. Also read: China inflation rises as coronavirus disrupts supply chains Worries over supply were not alleviated on Friday when Russia said it need more time to decide on a recommendation from a technical committee that has advised the Organization of the Petroleum Exporting Countries (OPEC) and its allies to cut production by a further 600,000 barrels per day. Russia Energy Minister Alexander Novak said Moscow needed more time to assess the situation, adding that US crude production growth would slow and global demand was still solid. Also read: Death toll in China's coronavirus crosses 900 as WHO sends team to investigate The proposal for the further cuts "failed to alleviate the pressure on oil, in part because the proposal has yet to be formally discussed by OPEC ministers and because Russia continues to push back against further cuts," said Stephen Innes, chief market strategist at AxiCorp. "If the cartel fails to reach an agreement, there will be more pain to come in oil (on the) downside." Oil traders also said they are concerned the proposed reduction would not be sufficient to tighten global markets.

Oil prices fall on oversupply worries as virus hits China demand

<a href="https://www.wionews.com/business-economy/oil-gains-on-us-crude-stocks-fall-opec-comments-on-slower-us-shale-growth-262061">Oil</a> slipped towards $62 a barrel on Friday and was heading for a weekly decline as concern that a virus in China may spread, curbing travel and oil demand, overshadowed supply cuts.

The <a href="https://www.wionews.com/world/china-virus-us-confirms-first-case-of-coronavirus-death-toll-reaches-nine-275853">virus</a> has prompted the suspension of public transport in 10 Chinese cities. Health authorities fear the infection rate could accelerate over the Lunar New Year holiday this weekend when millions of Chinese travel to their homes and abroad.

Global benchmark Brent fell 2 cents to $62.02 by 0951 GMT. Brent was down about 4 per cent&nbsp;this week, its third consecutive weekly drop. US&nbsp;crude rose 6 cents to $55.65 but was also on course for a weekly decline.

"One should be prepared for negative surprises when it comes to Chinese demand," said Eugen Weinberg, analyst at Commerzbank.

"The impact of this is all the greater because the restrictions are being imposed during the busiest travel season for the Chinese."

China is the world's second-largest oil consumer so any slowdown in travel would show up on demand forecasts.

Offering some support for prices was the <a href="https://www.wionews.com/business-economy/oil-prices-fall-on-weak-demand-growth-rise-in-us-crude-stocks-226381">US&nbsp;Energy Information Administration</a>'s latest weekly supply report, which on Thursday showed that crude inventories fell 405,000 barrels in the week to January&nbsp;&nbsp;17.

Nonetheless, the upside for prices was limited. Oil inventories in the wider industrialised world are above the five-year average according to OPEC figures, which analysts say is limiting the impact on prices of supply losses.

"Such is the bearish pressure that a raft of ongoing crude supply outages are not gaining much traction," said analysts at JBC Energy in a report.

Such outages include the shutdown this week of the bulk of oil supply in <a href="https://www.wionews.com/business-economy/opecs-share-of-indian-oil-imports-fell-down-43-lowest-since-2011-263065">OPEC</a> producer Libya.

The prospect of further steps by the Organization of the Petroleum Exporting Countries and its allies, known as <a href="https://www.wionews.com/business-economy/oil-slips-as-opec-gears-up-to-confirm-supply-cut-266600">OPEC+</a>, could still offer support. OPEC+ has been mostly limiting supply since 2017 and on January&nbsp;&nbsp;1 deepened a cut in output.

Saudi Arabia's energy minister said all options are open at the next OPEC+ meeting, which is scheduled for March, including further cuts, Al Arabiya television reported.

The current OPEC+ deal expires at the end of March. Russia's No. 2 oil producer Lukoil expects it to be extended, Interfax news agency cited its chief executive as saying on Thursday.

Oil slipped towards $62 a barrel on Friday and was heading for a weekly decline as concern that a virus in China may spread, curbing travel and oil demand, overshadowed supply cuts.

Oil slipped towards $62 a barrel on Friday and was heading for a weekly decline as concern that a virus in China may spread, curbing travel and oil demand, overshadowed supply cuts. The virus has prompted the suspension of public transport in 10 Chinese cities. Health authorities fear the infection rate could accelerate over the Lunar New Year holiday this weekend when millions of Chinese travel to their homes and abroad. Global benchmark Brent fell 2 cents to $62.02 by 0951 GMT. Brent was down about 4 per cent this week, its third consecutive weekly drop. US crude rose 6 cents to $55.65 but was also on course for a weekly decline. "One should be prepared for negative surprises when it comes to Chinese demand," said Eugen Weinberg, analyst at Commerzbank. "The impact of this is all the greater because the restrictions are being imposed during the busiest travel season for the Chinese." China is the world's second-largest oil consumer so any slowdown in travel would show up on demand forecasts. Offering some support for prices was the US Energy Information Administration's latest weekly supply report, which on Thursday showed that crude inventories fell 405,000 barrels in the week to January 17. Nonetheless, the upside for prices was limited. Oil inventories in the wider industrialised world are above the five-year average according to OPEC figures, which analysts say is limiting the impact on prices of supply losses. "Such is the bearish pressure that a raft of ongoing crude supply outages are not gaining much traction," said analysts at JBC Energy in a report. Such outages include the shutdown this week of the bulk of oil supply in OPEC producer Libya. The prospect of further steps by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, could still offer support. OPEC+ has been mostly limiting supply since 2017 and on January 1 deepened a cut in output. Saudi Arabia's energy minister said all options are open at the next OPEC+ meeting, which is scheduled for March, including further cuts, Al Arabiya television reported. The current OPEC+ deal expires at the end of March. Russia's No. 2 oil producer Lukoil expects it to be extended, Interfax news agency cited its chief executive as saying on Thursday.

Oil prices slip over China virus fears

Oil edged further above $65 a barrel on Friday as concerns about a possible renewed spike in <a href="https://www.wionews.com/opinions/middle-east-protests-a-tug-of-war-over-who-has-the-longer-breath-263181">Middle East tensions</a> outweighed rising US&nbsp;inventories and other signs of ample supply.

Iran responded to a <a href="https://www.wionews.com/videos/donald-trump-orders-killing-of-qassim-suleimani-in-baghdad-271821">US&nbsp;drone strike</a> that killed a top Iranian general on January&nbsp;3 with a missile attack on Iraqi airbases hosting US&nbsp;forces that left no casualties. But a Revolutionary Guards commander said Iran would take "harsher revenge" soon.

"Hostilities may have ended for the time being, but the longer-term risks of conflict have by no means vanished," said Stephen Brennock of oil broker PVM.

"Set against this backdrop, the threat of supply disruptions in the Middle East is very much alive."

Brent crude&nbsp;the global benchmark was up 24 cents at $65.61 by 1155 GMT and was heading for its first weekly decline in six weeks, down over 4 percent. US&nbsp;West Texas Intermediate crude&nbsp;added 11 cents to $59.67.

Brent is still below where it was before the US&nbsp;drone strike killed Iranian general Qassem Soleimani on January&nbsp;3.

"There has been some de-escalation, but the return of risk is still there," said Olivier Jakob, oil analyst at Petromatrix.

"The closing hours of Friday are traditionally filled by short-covering due to the impossibility to react during the weekend."

Still, there has been no disruption to Middle East production as a result of the flare-up in tensions and other indications this week suggest supply is ample.

Crude inventories in the United States rose last week by 1.2 million barrels, the US&nbsp;Energy Information Administration said on Wednesday.&nbsp;

That compared with analysts' expectations in a Reuters poll for a 3.6 million-barrel drop.

"There's too much supply out there," a Japan-based based oil executive told Reuters.

In a bid to tackle any build-up of excess supply, the Organization of the Petroleum Exporting Countries plus allies including Russia are embarking on a further cut in production as of January&nbsp;1 this year.

Industry surveys, including from Reuters, showed that OPEC output declined in December ahead of the new pact. Still, production remains higher than the forecast demand for early 2020, according to some analysts.&nbsp;

"The oversupply on the oil market is sizeable," said Carsten Fritsch, an analyst at Commerzbank.

Oil edged further above $65 a barrel on Friday as concerns about a possible renewed spike in Middle East tensions outweighed rising US inventories and other signs of ample supply.

Oil edged further above $65 a barrel on Friday as concerns about a possible renewed spike in Middle East tensions outweighed rising US inventories and other signs of ample supply. Iran responded to a US drone strike that killed a top Iranian general on January 3 with a missile attack on Iraqi airbases hosting US forces that left no casualties. But a Revolutionary Guards commander said Iran would take "harsher revenge" soon. "Hostilities may have ended for the time being, but the longer-term risks of conflict have by no means vanished," said Stephen Brennock of oil broker PVM. "Set against this backdrop, the threat of supply disruptions in the Middle East is very much alive." Brent crude the global benchmark was up 24 cents at $65.61 by 1155 GMT and was heading for its first weekly decline in six weeks, down over 4 percent. US West Texas Intermediate crude added 11 cents to $59.67. Brent is still below where it was before the US drone strike killed Iranian general Qassem Soleimani on January 3. "There has been some de-escalation, but the return of risk is still there," said Olivier Jakob, oil analyst at Petromatrix. "The closing hours of Friday are traditionally filled by short-covering due to the impossibility to react during the weekend." Still, there has been no disruption to Middle East production as a result of the flare-up in tensions and other indications this week suggest supply is ample. Crude inventories in the United States rose last week by 1.2 million barrels, the US Energy Information Administration said on Wednesday. That compared with analysts' expectations in a Reuters poll for a 3.6 million-barrel drop. "There's too much supply out there," a Japan-based based oil executive told Reuters. In a bid to tackle any build-up of excess supply, the Organization of the Petroleum Exporting Countries plus allies including Russia are embarking on a further cut in production as of January 1 this year. Industry surveys, including from Reuters, showed that OPEC output declined in December ahead of the new pact. Still, production remains higher than the forecast demand for early 2020, according to some analysts. "The oversupply on the oil market is sizeable," said Carsten Fritsch, an analyst at Commerzbank.

Oil edges above $65 as Middle East concerns support

US&nbsp;citizens working for foreign&nbsp;oil&nbsp;companies in the southern&nbsp;Iraqi city of Basra were leaving the country on Friday, the&nbsp;oil&nbsp;ministry said after&nbsp;a&nbsp;US&nbsp;airstrike&nbsp;killed a top&nbsp;<a href="https://www.wionews.com/business-economy/oil-prices-surge-after-us-strike-kills-iranian-general-271775">Iranian&nbsp;commander</a> in&nbsp;Iraq.

Hours&nbsp;after&nbsp;the killing of&nbsp;Iranian&nbsp;Quds&nbsp;Force&nbsp;leader&nbsp;<a href="https://www.wionews.com/world/deputy-commander-of-quds-force-to-replace-soleimani-irans-supreme-leader-ayatollah-ali-khamenei-271905">Qassem Soleimani</a> and&nbsp;Iraqi militia commander <a href="https://www.wionews.com/world/deputy-head-of-group-irans-quds-force-head-qasem-soleimani-killed-hashed-al-shaabi-271762">Abu Mahdi al-Muhandis</a>, who was with him, the&nbsp;US&nbsp;embassy in Baghdad urged all its citizens to&nbsp;leave&nbsp;Iraq&nbsp;immediately.

Iraqi officials said the evacuation would not affect&nbsp;oil&nbsp;operations, production or exports from the country, the second-biggest producer in the <a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">Organization of the Petroleum Exporting Countries</a> with the output of about 4.62 million barrels per day (BPD), according to a&nbsp;survey of OPEC output.

Oil&nbsp;company sources told&nbsp;earlier on Friday that dozens of foreign&nbsp;workers&nbsp;were expected to fly out of the country. A&nbsp;witness saw a number of foreigners, including&nbsp;US&nbsp;citizens, queuing at Basra&nbsp;airport and described the atmosphere as relaxed.

Some were travelling to Dubai on&nbsp;airline FlyDubai and others were checking in at the Qatar&nbsp;Airways counter.

A spokesman for BP, which operates the giant Rumaila&nbsp;oil&nbsp;field near Basra, declined to comment. Rumaila produced around 1.5 million BPD as recently as April.

Italian energy group Eni&nbsp;said the Zubair&nbsp;<a href="https://www.wionews.com/world/iraq-protesters-lock-down-oil-field-call-strike-270855">oil&nbsp;field</a>, which produced around 475,000 BPD in 2018, was "proceeding regularly", adding it was closely monitoring the situation.

US&nbsp;major Exxon Mobil declined to comment on whether it was evacuating staff but said the production "continues&nbsp;normally" at its West Qurna 1&nbsp;oil&nbsp;concession in the south of the country near the&nbsp;Iranian&nbsp;border.

"We continue to watch the situation closely," a spokeswoman said.

Exxon removed around 60 foreign staff from West Qurna last May&nbsp;after&nbsp;attacks near its&nbsp;oil&nbsp;facilities. The employees returned about two weeks later&nbsp;after&nbsp;the government agreed to provide additional security.

Schlumberger, which also works in southern&nbsp;Iraq, is evaluating the security situation, a spokesman said, declining to comment on the&nbsp;US&nbsp;call for citizens to evacuate. Last year it won a two-year contract to drill 40 wells for Basra&nbsp;Oil&nbsp;Co.

Ian Bryant, chief executive of Canadian&nbsp;oilfield company Packers Plus, said he was "more concerned than ever" about the safety of their staff in&nbsp;Iraq, adding he was worried that&nbsp;US, British and Canadian citizens might get caught up in any unrest.

Genel, an&nbsp;oil&nbsp;producer in the autonomous region of Kurdistan in northern&nbsp;Iraq, said its operations were continuing normally. It did not comment on any staff movements.

Gulf Keystone Petroleum, which also operates in Kurdistan, said "while these events are taking place ... Gulf Keystone is closely monitoring the situation and operations at (the Shaikan field) are carrying on as per usual".

US citizens working for foreign oil companies in the southern Iraqi city of Basra were leaving the country on Friday, the oil ministry said after a US airstrike killed a top Iranian commander in Iraq.

US citizens working for foreign oil companies in the southern Iraqi city of Basra were leaving the country on Friday, the oil ministry said after a US airstrike killed a top Iranian commander in Iraq. Hours after the killing of Iranian Quds Force leader Qassem Soleimani and Iraqi militia commander Abu Mahdi al-Muhandis, who was with him, the US embassy in Baghdad urged all its citizens to leave Iraq immediately. Iraqi officials said the evacuation would not affect oil operations, production or exports from the country, the second-biggest producer in the Organization of the Petroleum Exporting Countries with the output of about 4.62 million barrels per day (BPD), according to a survey of OPEC output. Oil company sources told earlier on Friday that dozens of foreign workers were expected to fly out of the country. A witness saw a number of foreigners, including US citizens, queuing at Basra airport and described the atmosphere as relaxed. Some were travelling to Dubai on airline FlyDubai and others were checking in at the Qatar Airways counter. A spokesman for BP, which operates the giant Rumaila oil field near Basra, declined to comment. Rumaila produced around 1.5 million BPD as recently as April. Italian energy group Eni said the Zubair oil field, which produced around 475,000 BPD in 2018, was "proceeding regularly", adding it was closely monitoring the situation. US major Exxon Mobil declined to comment on whether it was evacuating staff but said the production "continues normally" at its West Qurna 1 oil concession in the south of the country near the Iranian border. "We continue to watch the situation closely," a spokeswoman said. Exxon removed around 60 foreign staff from West Qurna last May after attacks near its oil facilities. The employees returned about two weeks later after the government agreed to provide additional security. Schlumberger, which also works in southern Iraq, is evaluating the security situation, a spokesman said, declining to comment on the US call for citizens to evacuate. Last year it won a two-year contract to drill 40 wells for Basra Oil Co. Ian Bryant, chief executive of Canadian oilfield company Packers Plus, said he was "more concerned than ever" about the safety of their staff in Iraq, adding he was worried that US, British and Canadian citizens might get caught up in any unrest. Genel, an oil producer in the autonomous region of Kurdistan in northern Iraq, said its operations were continuing normally. It did not comment on any staff movements. Gulf Keystone Petroleum, which also operates in Kurdistan, said "while these events are taking place ... Gulf Keystone is closely monitoring the situation and operations at (the Shaikan field) are carrying on as per usual".

US oil workers leave Iraq after air strike on Iranian leader Qassem Soleimani

<a href="https://www.wionews.com/business-economy/oil-eases-but-supported-by-trade-deal-hopes-269679">Oil&nbsp;prices</a>&nbsp;edged&nbsp;higher&nbsp;on Tuesday in thin pre-Christmas trading after Russia's energy minister said cooperation with OPEC to&nbsp;support&nbsp;the market would continue and as analysts&nbsp;forecast&nbsp;a second weekly decline in <a href="https://www.wionews.com/business-economy/oil-falls-as-us-inventories-rise-but-demand-hopes-stem-bigger-drop-268973">US&nbsp;crude inventories</a>.

Brent crude was up 5 cents at $66.44 a barrel by 0321 GMT. US&nbsp;West Texas Intermediate was 1 cent&nbsp;higher&nbsp;at $60.53 a barrel.

OPEC, Russia and other producers that have linked up to curtail production and&nbsp;support&nbsp;prices&nbsp;will continue their cooperation as long as it is "effective and brings results," Russian energy minister <a href="https://www.wionews.com/business-economy/opec-and-allies-prepare-to-deepen-oil-output-cuts-266447">Alexander Novak</a> said in an interview on Monday.

Cooperation with the Organization of the Petroleum Exporting Countries (<a href="https://www.wionews.com/business-economy/oil-slips-as-opec-gears-up-to-confirm-supply-cut-266600">OPEC</a>) would continue "until the market requires it," Novak added.

OPEC and other producers agreed in November to extend and deepen output curbs in place since 2017. The reduction of output could see as much as 2.1 million barrels per day (bpd) taken off the market, or about 2 per cent&nbsp;of global demand.

Still, OPEC needs to do more to balance out the market on a sustainable basis, Bjornar Tonhaugen, head of&nbsp;oil&nbsp;market research at Rystad Energy said in a note.

"The OPEC&nbsp;cuts&nbsp;didn't fully solve the problem&nbsp;instead they offer a light bandage to get through the first quarter of 2020," said Tonhaugen, adding "after that, we believe the market will begin to realize the looming oversupply."

US&nbsp;producers have been happy to fill any gaps in the market, pumping ever greater amounts of crude to reach a record high of around 13 million bpd in November.

That has helped swell inventories, which have been stubbornly resistant to drawdowns. US&nbsp;stocks are up around 1 per cent&nbsp;this year.

Crude stocks are, however, expected to have fallen by about 1.8 million barrels last week, a second week of declines, according to a preliminary&nbsp;poll.

Still, <a href="https://www.wionews.com/business-economy/oil-gains-on-us-crude-stocks-fall-opec-comments-on-slower-us-shale-growth-262061">gasoline stocks</a> are expected to have risen for a seventh week in a row and distillate inventories are&nbsp;forecast&nbsp;to have gained for a fifth consecutive week.

Oil prices edged higher on Tuesday in thin pre-Christmas trading after Russia's energy minister said cooperation with OPEC to support the market would continue and as analysts forecast a second weekly decline in US crude inventories.

Oil prices edged higher on Tuesday in thin pre-Christmas trading after Russia's energy minister said cooperation with OPEC to support the market would continue and as analysts forecast a second weekly decline in US crude inventories. Brent crude was up 5 cents at $66.44 a barrel by 0321 GMT. US West Texas Intermediate was 1 cent higher at $60.53 a barrel. OPEC, Russia and other producers that have linked up to curtail production and support prices will continue their cooperation as long as it is "effective and brings results," Russian energy minister Alexander Novak said in an interview on Monday. Cooperation with the Organization of the Petroleum Exporting Countries (OPEC) would continue "until the market requires it," Novak added. OPEC and other producers agreed in November to extend and deepen output curbs in place since 2017. The reduction of output could see as much as 2.1 million barrels per day (bpd) taken off the market, or about 2 per cent of global demand. Still, OPEC needs to do more to balance out the market on a sustainable basis, Bjornar Tonhaugen, head of oil market research at Rystad Energy said in a note. "The OPEC cuts didn't fully solve the problem instead they offer a light bandage to get through the first quarter of 2020," said Tonhaugen, adding "after that, we believe the market will begin to realize the looming oversupply." US producers have been happy to fill any gaps in the market, pumping ever greater amounts of crude to reach a record high of around 13 million bpd in November. That has helped swell inventories, which have been stubbornly resistant to drawdowns. US stocks are up around 1 per cent this year. Crude stocks are, however, expected to have fallen by about 1.8 million barrels last week, a second week of declines, according to a preliminary poll. Still, gasoline stocks are expected to have risen for a seventh week in a row and distillate inventories are forecast to have gained for a fifth consecutive week.

Oil prices inch higher in pre-Christmas trading

Oil&nbsp;prices fell on Wednesday after&nbsp;US&nbsp;industry data showed a surprise&nbsp;build-up in crude&nbsp;inventories&nbsp;but losses were kept in check by expectations for an uptick in&nbsp;demand&nbsp;next year on the back of progress in resolving the&nbsp;<a href="https://www.wionews.com/opinions/us-china-trade-war-points-to-the-real-crisis-that-global-leaders-must-confront-at-g20-summit-231112">US-China trade</a> row.

Brent crude futures&nbsp;dropped 41 cents, or 0.6 per cents, to $65.69 a barrel by 0940 GMT on Wednesday. West Texas Intermediate (WTI) crude futures fell 52 cents, or 0.9 per cents, to $60.42 per barrel.

Prices had&nbsp;risen more than 1 per cent&nbsp;in the previous session after the announcement last week of the so-called <a href="https://www.wionews.com/world/phase-one-trade-deal-reached-with-us-china-268186">Phase One</a> of a&nbsp;U.S.-China trade deal, which lifted global economic prospects and improved the outlook for energy&nbsp;demand.

"The sizzling&nbsp;oil&nbsp;market rally came to a grinding halt after an unexpected climb in the weekly&nbsp;US&nbsp;crude inventory report," said <a href="https://www.wionews.com/business-&amp;-economy/oil-prices-drop-on-worries-about-oversupply-154079?amp">Stephen Innes</a>, market strategist at AxiTrader, although he said figures for stocks were "unlikely to be a game-changer."

"Investors have transcended the trade deal-inspired relief rally euphoria, and are now banking on a fundamental&nbsp;demand-driven shift that could quicken the pace of the&nbsp;oil&nbsp;market rebalancing in the first quarter of 2020," he said.

US&nbsp;crude&nbsp;inventories&nbsp;climbed 4.7 million barrels in the week to December&nbsp;13 to 452 million, compared with analysts' expectations for a draw of 1.3 million barrels, data from industry group the <a href="https://www.wionews.com/world/us-oil-falls-to-three-week-low-on-inventory-gains-due-to-brexit-fears-506">American Petroleum Institute</a> showed.

Data from the&nbsp;US&nbsp;Energy Information Administration (EIA) is due later on Wednesday.

"As much as the API has taken the wind out of bulls' sails, the lull in&nbsp;upside is expected to be short-lived. After all, recent positive developments have given&nbsp;oil&nbsp;fundamentals for next year a supportive shot in the arm," said Stephen Brennock of&nbsp;oil&nbsp;broker PVM.

Deeper production cuts&nbsp;coming from the Organization of the Petroleum Exporting Countries and its allies, such as Russia, which make up a group known as OPEC+, also continued to offer some support and prevented a further slide in prices.

OPEC+, which has cut production by 1.2 million barrels per day (bpd) since January 1 this year, will make a further output cut of 500,000 bpd from January 1, 2020, to support the market.&nbsp;

Oil prices fell on Wednesday after US industry data showed a surprise build-up in crude inventories but losses were kept in check by expectations for an uptick in demand next year on the back of progress in resolving the US-China trade row.

Oil prices fell on Wednesday after US industry data showed a surprise build-up in crude inventories but losses were kept in check by expectations for an uptick in demand next year on the back of progress in resolving the US-China trade row. Brent crude futures dropped 41 cents, or 0.6 per cents, to $65.69 a barrel by 0940 GMT on Wednesday. West Texas Intermediate (WTI) crude futures fell 52 cents, or 0.9 per cents, to $60.42 per barrel. Prices had risen more than 1 per cent in the previous session after the announcement last week of the so-called Phase One of a U.S.-China trade deal, which lifted global economic prospects and improved the outlook for energy demand. "The sizzling oil market rally came to a grinding halt after an unexpected climb in the weekly US crude inventory report," said Stephen Innes, market strategist at AxiTrader, although he said figures for stocks were "unlikely to be a game-changer." "Investors have transcended the trade deal-inspired relief rally euphoria, and are now banking on a fundamental demand-driven shift that could quicken the pace of the oil market rebalancing in the first quarter of 2020," he said. US crude inventories climbed 4.7 million barrels in the week to December 13 to 452 million, compared with analysts' expectations for a draw of 1.3 million barrels, data from industry group the American Petroleum Institute showed. Data from the US Energy Information Administration (EIA) is due later on Wednesday. "As much as the API has taken the wind out of bulls' sails, the lull in upside is expected to be short-lived. After all, recent positive developments have given oil fundamentals for next year a supportive shot in the arm," said Stephen Brennock of oil broker PVM. Deeper production cuts coming from the Organization of the Petroleum Exporting Countries and its allies, such as Russia, which make up a group known as OPEC+, also continued to offer some support and prevented a further slide in prices. OPEC+, which has cut production by 1.2 million barrels per day (bpd) since January 1 this year, will make a further output cut of 500,000 bpd from January 1, 2020, to support the market.

Oil falls as US inventories rise but demand hopes stem bigger drop

<a href="https://www.wionews.com/business-economy/oil-prices-tumble-ahead-of-opec-meeting-global-stocks-fall-265363">Oil prices</a> edged higher on Thursday ahead of an OPEC meeting where members are expected to agree on deeper output cuts in an effort to prop up prices and prevent a glut next year.

Sources told Reuters that OPEC was seeking to increase production cuts by the group and its allies by Russia by more than 400,000 barrels per day (BPD) from their current level of 1.2 million BPD.

The Organization of the Petroleum Exporting Countries meets on Thursday in Vienna followed by a meeting on Friday with Russia and other producers. The group is known as <a href="https://www.wionews.com/business-economy/oil-prices-jump-to-61-over-opec-supply-cut-reports-265782">OPEC+</a>.

Brent crude&nbsp;futures were up 21 cents, or 0.33 per cent, to $63.21 a barrel at 1005 GMT. Brent surged 3.6 per cent&nbsp;on Wednesday. <a href="https://www.wionews.com/business-economy/crude-oil-prices-fall-1-on-fears-for-global-economy-233148">West Texas Intermediate</a> (WTI) crude&nbsp; futures were up 1 cents to $58.44 a barrel. They settled up 4.2 per cent&nbsp;on Wednesday.

The OPEC+ group has been curbing output since 2017 to counter surging production from the United States, now the world's biggest oil producer thanks to rapid growth in shale oil output.

Next year, rising production in other non-OPEC countries such as Brazil and Norway threatens to add to the glut.

"We expect a constructive outcome to today's meeting in terms of a prolongation of the deal, but are not yet convinced that a strong bullish surprise with a sizeable adjustment to the target level will really transpire," Vienna-based consultancy JBC Energy said in a note.

OPEC's effort to deepen cuts and increase member compliance was also driven by the group's de facto leader Saudi Arabia's hopes to see higher oil prices to support its budget and <a href="https://www.wionews.com/business-economy/worlds-biggest-initial-public-offering-saudi-aramco-seeks-171-trillion-in-valuation-262778">initial public offering </a>(IPO) of state-owned Saudi Aramco.

Oil prices surged on Wednesday on expectations of deeper OPEC cuts and data showing a large drop in US&nbsp;crude inventories last week. But prices are still roughly where they were a week ago, as concerns about a US-Chinese trade war persist.

US President <a href="https://www.wionews.com/business-economy/global-stocks-rattled-after-donald-trump-says-no-deadline-on-us-china-trade-deal-266025">Donald Trump </a>on Wednesday described trade talks with China as going "very well", a day after saying it could take until after next year's presidential election to complete an agreement.

Oil prices edged higher on Thursday ahead of an OPEC meeting where members are expected to agree on deeper output cuts in an effort to prop up prices and prevent a glut next year.

Oil prices edged higher on Thursday ahead of an OPEC meeting where members are expected to agree on deeper output cuts in an effort to prop up prices and prevent a glut next year. Sources told Reuters that OPEC was seeking to increase production cuts by the group and its allies by Russia by more than 400,000 barrels per day (BPD) from their current level of 1.2 million BPD. The Organization of the Petroleum Exporting Countries meets on Thursday in Vienna followed by a meeting on Friday with Russia and other producers. The group is known as OPEC+. Brent crude futures were up 21 cents, or 0.33 per cent, to $63.21 a barrel at 1005 GMT. Brent surged 3.6 per cent on Wednesday. West Texas Intermediate (WTI) crude futures were up 1 cents to $58.44 a barrel. They settled up 4.2 per cent on Wednesday. The OPEC+ group has been curbing output since 2017 to counter surging production from the United States, now the world's biggest oil producer thanks to rapid growth in shale oil output. Next year, rising production in other non-OPEC countries such as Brazil and Norway threatens to add to the glut. "We expect a constructive outcome to today's meeting in terms of a prolongation of the deal, but are not yet convinced that a strong bullish surprise with a sizeable adjustment to the target level will really transpire," Vienna-based consultancy JBC Energy said in a note. OPEC's effort to deepen cuts and increase member compliance was also driven by the group's de facto leader Saudi Arabia's hopes to see higher oil prices to support its budget and initial public offering (IPO) of state-owned Saudi Aramco. Oil prices surged on Wednesday on expectations of deeper OPEC cuts and data showing a large drop in US crude inventories last week. But prices are still roughly where they were a week ago, as concerns about a US-Chinese trade war persist. US President Donald Trump on Wednesday described trade talks with China as going "very well", a day after saying it could take until after next year's presidential election to complete an agreement.

Oil rises as OPEC weighs deeper output cuts

<a href="https://www.wionews.com/business-economy/oil-drops-as-us-inventory-build-record-output-rekindles-supply-worries-264998">Oil prices </a>tumbled Friday on expectations OPEC next week won't take aggressive action to boost oil prices, while global equities pulled back on trade war worries.&nbsp;

Both the US and European benchmark contracts for oil fell ahead of the December 5 meeting of the Organization of the Petroleum Exporting Countries in Vienna where analysts expect the cartel to stick with a current production agreement, but not to deepen cuts.

"The market may be disappointed that OPEC is not entertaining additional production cuts," said Andy Lipow of Lipow Oil Associates, adding that the group is "in a difficult position" given weak demand and higher output in the US and other regions.

Equity markets ended lower following a lackluster session. US bourses pulled back from records in a holiday-shortened session with low trading volumes.

Analysts said stocks were dragged lower by increased US-China trade friction as Beijing threatened unspecified retaliation after President Donald Trump signed into law legislation supporting Hong Kong pro-democracy protesters.

The market feels "a little angst" on US-China trade relations, although the modest drop suggests few fears that a preliminary US-China trade deal will fall apart, said Briefing.com analyst Patrick O'Hare, who added that low trading volume sharpened the decline.

The pullback also came as the holiday shopping season got started in earnest with the "Black Friday" promotions after Thanksgiving.&nbsp;

Walmart rose slightly, but most other leading US retailers fell, including Target and Amazon, as consumers shift ever more of their dollars to e-commerce from traditional stores.&nbsp;

Elsewhere, London underperformed its eurozone peers in response to a stronger pound which was boosted by expectations that Britain's ruling Conservatives will win next month's general election.

This would likely allow Prime Minister Boris Johnson to push through his Brexit agreement and avoid a no-deal divorce from the European Union.

On the corporate front, shares in Daimler dropped 1.5 per cent. on the Frankfurt bourse as the German luxury automaker said it would slash at least 10,000 jobs worldwide in a major cost-cutting drive to help finance the switch to electric cars.

Shares in UK online supermarket Ocado surged after the company announced a deal to provide artificial intelligence (AI) capabilities to Japanese retail giant Aeon.

Key figures around 1900 GMT&nbsp;

New York - Dow: DOWN 0.4 percent at 28,051.41 (close)

New York - S&amp;P 500: DOWN 0.4 percent at 3,140.98 (close)

New York - Nasdaq: DOWN 0.5 percent at 8,665.47 (close)

London - FTSE 100: DOWN 0.9 percent at 7,346.53 (close)

Frankfurt - DAX 30: DOWN 0.1 percent at 13,236.38 (close)

Paris - CAC 40: DOWN 0.1 percent at 5,905.17 (close)

EURO STOXX 50: FLAT at 3,703.58 (close)

Tokyo - Nikkei 225: DOWN 0.5 percent at 23,293.91 (close)

Hong Kong - Hang Seng: DOWN 2.0 percent at 26,346.49 (close)

Shanghai - Composite: DOWN 0.6 percent at 2,871.98 (close)

Euro/dollar: UP at $1.1017 from $1.1009&nbsp;

Pound/dollar: UP at $1.2933 from $1.2912

Euro/pound: DOWN at 85.18 pence from 85.27

Dollar/yen: DOWN at 109.47 yen from 109.51

Brent North Sea crude: DOWN 2.3 percent at $62.43 per barrel

West Texas Intermediate: DOWN 5.1 percent at $55.17 per barrel

Oil prices tumbled Friday on expectations OPEC next week won't take aggressive action to boost oil prices, while global equities pulled back on trade war worries.

Oil prices tumbled Friday on expectations OPEC next week won't take aggressive action to boost oil prices, while global equities pulled back on trade war worries. Both the US and European benchmark contracts for oil fell ahead of the December 5 meeting of the Organization of the Petroleum Exporting Countries in Vienna where analysts expect the cartel to stick with a current production agreement, but not to deepen cuts. "The market may be disappointed that OPEC is not entertaining additional production cuts," said Andy Lipow of Lipow Oil Associates, adding that the group is "in a difficult position" given weak demand and higher output in the US and other regions. Equity markets ended lower following a lackluster session. US bourses pulled back from records in a holiday-shortened session with low trading volumes. Analysts said stocks were dragged lower by increased US-China trade friction as Beijing threatened unspecified retaliation after President Donald Trump signed into law legislation supporting Hong Kong pro-democracy protesters. The market feels "a little angst" on US-China trade relations, although the modest drop suggests few fears that a preliminary US-China trade deal will fall apart, said Briefing.com analyst Patrick O'Hare, who added that low trading volume sharpened the decline. The pullback also came as the holiday shopping season got started in earnest with the "Black Friday" promotions after Thanksgiving. Walmart rose slightly, but most other leading US retailers fell, including Target and Amazon, as consumers shift ever more of their dollars to e-commerce from traditional stores. Elsewhere, London underperformed its eurozone peers in response to a stronger pound which was boosted by expectations that Britain's ruling Conservatives will win next month's general election. This would likely allow Prime Minister Boris Johnson to push through his Brexit agreement and avoid a no-deal divorce from the European Union. On the corporate front, shares in Daimler dropped 1.5 per cent. on the Frankfurt bourse as the German luxury automaker said it would slash at least 10,000 jobs worldwide in a major cost-cutting drive to help finance the switch to electric cars. Shares in UK online supermarket Ocado surged after the company announced a deal to provide artificial intelligence (AI) capabilities to Japanese retail giant Aeon. Key figures around 1900 GMT New York - Dow: DOWN 0.4 percent at 28,051.41 (close) New York - S&P 500: DOWN 0.4 percent at 3,140.98 (close) New York - Nasdaq: DOWN 0.5 percent at 8,665.47 (close) London - FTSE 100: DOWN 0.9 percent at 7,346.53 (close) Frankfurt - DAX 30: DOWN 0.1 percent at 13,236.38 (close) Paris - CAC 40: DOWN 0.1 percent at 5,905.17 (close) EURO STOXX 50: FLAT at 3,703.58 (close) Tokyo - Nikkei 225: DOWN 0.5 percent at 23,293.91 (close) Hong Kong - Hang Seng: DOWN 2.0 percent at 26,346.49 (close) Shanghai - Composite: DOWN 0.6 percent at 2,871.98 (close) Euro/dollar: UP at $1.1017 from $1.1009 Pound/dollar: UP at $1.2933 from $1.2912 Euro/pound: DOWN at 85.18 pence from 85.27 Dollar/yen: DOWN at 109.47 yen from 109.51 Brent North Sea crude: DOWN 2.3 percent at $62.43 per barrel West Texas Intermediate: DOWN 5.1 percent at $55.17 per barrel

Oil prices tumble ahead of OPEC meeting, global stocks fall

The Organization of the Petroleum Exporting Countries and its allies face stiffening competition in 2020, the International Energy Agency said on Friday, adding urgency to the oil producer group's policy meeting next month.

"The OPEC+ countries face a major challenge in 2020 as demand for their crude is expected to fall sharply," the Paris-based agency said in a monthly report.

The IEA estimated non-OPEC supply growth would surge to 2.3 million barrels per day (bpd) next year compared to 1.8 million bpd in 2019, citing production from the United States, Brazil, Norway and Guyana.

"The hefty supply cushion that is likely to build up during the first half of next year will offer cold comfort to OPEC+ ministers gathering in Vienna at the start of next month," it added.

While US&nbsp;supply rose by 145,000 bpd in October, the IEA said, a slowdown in activity that started earlier this year looks set to continue as companies prioritise capital discipline.

Demand for crude oil from OPEC in 2020 will be 28.9 million bpd, the IEA forecast, 1 million bpd below the exporter club's current production.

The recovery by OPEC's de facto leader Saudi Arabia from attacks on the country's oil infrastructure contributed 1.4 million bpd to the global oil supply increase in October of 1.5 million bpd.

"With plans underway for the Aramco IPO and the persistent need for revenues to fund the government budget, Riyadh has every incentive to keep oil prices supported," the IEA said.

Saudi state oil company Aramco, the world’s most profitable firm, starts a share sale on Nov. 17 in an initial public offering (IPO) that may raise between $20 billion and $40 billion.

It was the IEA's last monthly report before December. 5-6 talks among OPEC states and partners led by Russia on whether to maintain supply curbs aimed at buoying prices and balancing the market.

The agency kept its assessments for growth in global oil demand in 2019 and 2020 at 1 million bpd and 1.2 million bpd respectively but said its outlook might slightly underestimate the impact of tariffs from the US-China&nbsp;trade war.

The IEA said that if some or all tariffs were lifted in coming months, "world economic growth and oil demand growth would both rise significantly", though the rebound may not be immediate.

Sluggish refinery activity in the first three quarters has caused crude oil demand to fall in 2019 for the first time since 2009, the IEA said, but refining is set to rebound sharply in the fourth quarter and in 2020.

The Organization of the Petroleum Exporting Countries and its allies face stiffening competition in 2020, the International Energy Agency said on Friday, adding urgency to the oil producer group's policy meeting next month.

The Organization of the Petroleum Exporting Countries and its allies face stiffening competition in 2020, the International Energy Agency said on Friday, adding urgency to the oil producer group's policy meeting next month. "The OPEC+ countries face a major challenge in 2020 as demand for their crude is expected to fall sharply," the Paris-based agency said in a monthly report. The IEA estimated non-OPEC supply growth would surge to 2.3 million barrels per day (bpd) next year compared to 1.8 million bpd in 2019, citing production from the United States, Brazil, Norway and Guyana. "The hefty supply cushion that is likely to build up during the first half of next year will offer cold comfort to OPEC+ ministers gathering in Vienna at the start of next month," it added. While US supply rose by 145,000 bpd in October, the IEA said, a slowdown in activity that started earlier this year looks set to continue as companies prioritise capital discipline. Demand for crude oil from OPEC in 2020 will be 28.9 million bpd, the IEA forecast, 1 million bpd below the exporter club's current production. The recovery by OPEC's de facto leader Saudi Arabia from attacks on the country's oil infrastructure contributed 1.4 million bpd to the global oil supply increase in October of 1.5 million bpd. "With plans underway for the Aramco IPO and the persistent need for revenues to fund the government budget, Riyadh has every incentive to keep oil prices supported," the IEA said. Saudi state oil company Aramco, the world’s most profitable firm, starts a share sale on Nov. 17 in an initial public offering (IPO) that may raise between $20 billion and $40 billion. It was the IEA's last monthly report before December. 5-6 talks among OPEC states and partners led by Russia on whether to maintain supply curbs aimed at buoying prices and balancing the market. The agency kept its assessments for growth in global oil demand in 2019 and 2020 at 1 million bpd and 1.2 million bpd respectively but said its outlook might slightly underestimate the impact of tariffs from the US-China trade war. The IEA said that if some or all tariffs were lifted in coming months, "world economic growth and oil demand growth would both rise significantly", though the rebound may not be immediate. Sluggish refinery activity in the first three quarters has caused crude oil demand to fall in 2019 for the first time since 2009, the IEA said, but refining is set to rebound sharply in the fourth quarter and in 2020.

Organization of the Petroleum Exporting Countries faces 'major challenge' from competitors' surging output: International Energy Agency

<a href="https://www.wionews.com/world/russia-agrees-with-saudi-arabia-to-extend-opec-and-oil-output-deal-231649">OPEC</a> on Thursday forecast world demand for its crude will decline next year as rivals pump more, pointing to the return of a surplus despite an OPEC-led pact to restrain supplies.

The drop in demand for OPEC crude highlights the sustained boost that OPEC's policy to support prices by supply cuts is giving to US shale and other rival supply. This potentially gives US President Donald Trump more room to keep up sanctions on OPEC members Iran and <a href="https://www.wionews.com/opinions/indigenous-people-are-forgotten-victims-of-the-ongoing-crisis-in-venezuela-215018">Venezuela</a>.

Giving its first 2020 forecasts in a monthly report, the Organization of the Petroleum Exporting Countries said the world would need 29.27 million barrels per day (bpd) of crude from its 14 members next year, down 1.34 million bpd from this year.

"US tight crude production is anticipated to continue to grow as new pipelines will allow more Permian crude to flow to the US Gulf Coast export hub," OPEC said, using another term for shale oil.

OPEC in the report also forecast that world oil demand would rise at the same pace as this year and that the world economy would expand at this year's pace, despite slower growth in the United States and China.

"The 2020 forecast assumes that no further downside risks materialize, particularly that trade-related issues do not escalate further," OPEC said of the economic outlook.

"Brexit poses an additional risk, as does a continuation in the current slowdown in manufacturing activity."

OPEC, Russia and other producers have since Jan. 1 implemented a deal to cut output by 1.2 million bpd. The alliance, known as OPEC+, last week renewed the pact until March 2020 to avoid a build-up of inventories that could hit prices.

Oil pared earlier gains after the report was released, although prices were still trading above $67 a barrel after three Iranian vessels tried to block a British ship in the Strait of Hormuz oil chokepoint.

Despite the supply cut, oil has tumbled from April's 2019 peak above $75, pressured by concerns over the US-China trade dispute and an economic slowdown.

OPEC also oil inventories in developed economies rose in May, suggesting a trend that could raise concern over a possible oil glut.

Stocks in May exceeded the five-year average - a yardstick OPEC watches closely - by 25 million barrels.

Output Drop

OPEC said its oil output in June fell by 68,000 bpd to 29.83 million bpd as US sanctions on Iran boosted the impact of the supply pact.

According to figures OPEC collects from secondary sources, supply from Iran posted the biggest decline, by 142,000 bpd, as Washington tightened the screws on Iranian exports.

Top exporter Saudi Arabia increased output by 126,000 bpd to 9.81 million bpd in June but continued to voluntarily pump less than the supply pact allows it to in order to bolster the market. Nigeria, seeking a higher OPEC quota, posted the group's largest boost in output.

With 2020 demand for OPEC crude expected to average 29.27 million bpd, OPEC's report suggests there will be a 2020 supply surplus of over 500,000 bpd if OPEC keeps pumping at June's rate and other things remain equal.

OPEC on Thursday forecast world demand for its crude will decline next year as rivals pump more, pointing to the return of a surplus despite an OPEC-led pact to restrain supplies.

OPEC on Thursday forecast world demand for its crude will decline next year as rivals pump more, pointing to the return of a surplus despite an OPEC-led pact to restrain supplies. The drop in demand for OPEC crude highlights the sustained boost that OPEC's policy to support prices by supply cuts is giving to US shale and other rival supply. This potentially gives US President Donald Trump more room to keep up sanctions on OPEC members Iran and Venezuela. Giving its first 2020 forecasts in a monthly report, the Organization of the Petroleum Exporting Countries said the world would need 29.27 million barrels per day (bpd) of crude from its 14 members next year, down 1.34 million bpd from this year. "US tight crude production is anticipated to continue to grow as new pipelines will allow more Permian crude to flow to the US Gulf Coast export hub," OPEC said, using another term for shale oil. OPEC in the report also forecast that world oil demand would rise at the same pace as this year and that the world economy would expand at this year's pace, despite slower growth in the United States and China. "The 2020 forecast assumes that no further downside risks materialize, particularly that trade-related issues do not escalate further," OPEC said of the economic outlook. "Brexit poses an additional risk, as does a continuation in the current slowdown in manufacturing activity." OPEC, Russia and other producers have since Jan. 1 implemented a deal to cut output by 1.2 million bpd. The alliance, known as OPEC+, last week renewed the pact until March 2020 to avoid a build-up of inventories that could hit prices. Oil pared earlier gains after the report was released, although prices were still trading above $67 a barrel after three Iranian vessels tried to block a British ship in the Strait of Hormuz oil chokepoint. Despite the supply cut, oil has tumbled from April's 2019 peak above $75, pressured by concerns over the US-China trade dispute and an economic slowdown. OPEC also oil inventories in developed economies rose in May, suggesting a trend that could raise concern over a possible oil glut. Stocks in May exceeded the five-year average - a yardstick OPEC watches closely - by 25 million barrels. Output Drop OPEC said its oil output in June fell by 68,000 bpd to 29.83 million bpd as US sanctions on Iran boosted the impact of the supply pact. According to figures OPEC collects from secondary sources, supply from Iran posted the biggest decline, by 142,000 bpd, as Washington tightened the screws on Iranian exports. Top exporter Saudi Arabia increased output by 126,000 bpd to 9.81 million bpd in June but continued to voluntarily pump less than the supply pact allows it to in order to bolster the market. Nigeria, seeking a higher OPEC quota, posted the group's largest boost in output. With 2020 demand for OPEC crude expected to average 29.27 million bpd, OPEC's report suggests there will be a 2020 supply surplus of over 500,000 bpd if OPEC keeps pumping at June's rate and other things remain equal.

OPEC sees lower 2020 demand for its oil, points to surplus

When <a href="https://www.wionews.com/entertainment/vladimir-putin-replies-to-elton-johns-hypocrisy-comment-231519">Vladimir Putin</a> announced at the weekend that OPEC would extend oil production cuts, broadcasting a deal before the group had even met to approve it, the move angered some member nations.

They were dismayed at the leading role non-OPEC Russia, once seen as the group's rival in oil markets, was playing in shaping the group's policies.

But reality soon set in, and the acceptance that Moscow could help OPEC in its goal of propping up oil prices at a time when it is facing intensifying heat on another front: from US President <a href="https://www.wionews.com/world/donald-trump-angry-about-khashoggi-murder-but-says-no-one-blames-crown-prince-mohammed-bin-salman-231433">Donald Trump</a>.

Trump is putting unprecedented pressure on OPEC and its de-facto leader Saudi Arabia, demanding they pump more crude to drive down fuel prices - a key domestic issue for him as he seeks re-election next year.

Iranian Oil Minister Bijan Zanganeh initially expressed outrage about Russian President Putin's pre-announcement of the extended output cuts.

"OPEC is going to die with these processes," he declared on Monday morning before OPEC oil ministers met to effectively rubber-stamp a done deal, bemoaning the Russia-Saudi dominance of the group's affairs.

But by Monday evening, he had thrown his support behind the deal: "The meeting was good for Iran and we achieved what we wanted."

OPEC and Russia have become unlikely bedfellows, forging an "OPEC+" alliance to reduce global crude supply to counter soaring output from the United States and a weakening world economy.

It is a marriage of convenience as both want higher oil prices to shore up their finances, while the alliance could also strengthen OPEC's position in the face of Trump's demands.

"I don't think Russia is calling the shots," said Saudi Energy Minister Khalid al-Falih when asked if Putin was now OPEC's boss. "I think Russia's influence is welcome."

Iran's veteran OPEC governor Hossein Kazempour Ardebili concurred, echoing his boss Zanganeh's conciliatory tone.

"Russia is a big player. If it announced something in agreement with the rest of OPEC, this is most welcome," he said. "We are working together."

Iraq, which has overtaken Iran as OPEC's second-largest producer after Saudi Arabia and has taken its market share in Europe and Asia, also said Moscow's rising role was positive.

Such a chorus of approval is a sharp reversal for relations between OPEC and Russia that have been characterised by antipathy and distrust for decades.

Back in 2001, Russia agreed to cut production in tandem with OPEC but never delivered on its pledges and instead raised output. That severely damaged relations and other attempts at cooperation were unsuccessful - until the recent alliance.

In his book "Out of the Desert", former Saudi Oil Minister Ali al Naimi wrote that his 2014 meeting with Russian officials lasted just minutes. Upon learning Russia would not cut output, he gathered his papers and said: "I think the meeting is over."

Changing dynamics

Putin announced on Saturday that he had met Saudi Crown Prince Mohammed bin Salman on the sidelines of a G20 meeting in Osaka and they had agreed to extend the OPEC+ production cuts.

Gary Ross, chief executive of Black Gold Investors, said that even if it was "indelicate" for Saudi Arabia to let Putin announce the deal, it showed the changing oil market dynamics.

"Trump has one interest – low oil prices. Putin wants higher prices," said Ross, a veteran OPEC watcher. "Putin is vitally important for OPEC. And it is still in Russia's best interest to cooperate with OPEC as half its budget comes from energy revenues."

Russia needs prices of $45-50 a barrel to balance its budget and its finances are stretched by U.S. sanctions imposed following its annexation of Crimea. Saudi Arabia needs an even higher price of $80. Benchmark Brent crude is currently in the region of $65 a barrel.

But just as the collaboration could lend Saudi Arabia some support against Trump, who has demanded Riyadh increase oil supply if it wants U.S. military support in its standoff with regional rival Iran, it also gives Putin more than extra revenues.

Good relations with Riyadh, an American ally, bolsters Moscow's clout in the Middle East, helps Putin's campaign in Syria and might even help mend relations with Washington, according to two sources in Russia's delegation to Vienna, where OPEC officials have been meeting.

Highlighting those intersecting roles, Russian Energy Minister Alexander Novak also serves as head of several Russian government commissions on trade and cooperation including with Saudi Arabia, Iran, Turkey and Qatar.

Iran's change in tone, in particular, illustrates the conflicting political and economic pressures it faces.

Tehran's falling production, due to U.S. sanctions reimposed and extended by Trump, has reduced its role within OPEC while increasing those of Saudi Arabia and non-OPEC Russia.

Iran's exports plummeted to 0.3 million barrels per day in June from as much as 2.5 million bpd in April 2018. Oil output in OPEC's exempt nations

But Iran is itself also looking to help from Russia, one of just a few countries that have offered to aid Tehran to counter the sanctions choking its oil trade and hammering its economy.

Two Russian energy industry sources said some work was being done to boost the Iranian economy but talks were slow and difficult, without giving details of the nature of the plans.

When Vladimir Putin announced at the weekend that OPEC would extend oil production cuts, broadcasting a deal before the group had even met to approve it, the move angered some member nations.

When Vladimir Putin announced at the weekend that OPEC would extend oil production cuts, broadcasting a deal before the group had even met to approve it, the move angered some member nations. They were dismayed at the leading role non-OPEC Russia, once seen as the group's rival in oil markets, was playing in shaping the group's policies. But reality soon set in, and the acceptance that Moscow could help OPEC in its goal of propping up oil prices at a time when it is facing intensifying heat on another front: from US President Donald Trump. Trump is putting unprecedented pressure on OPEC and its de-facto leader Saudi Arabia, demanding they pump more crude to drive down fuel prices - a key domestic issue for him as he seeks re-election next year. Iranian Oil Minister Bijan Zanganeh initially expressed outrage about Russian President Putin's pre-announcement of the extended output cuts. "OPEC is going to die with these processes," he declared on Monday morning before OPEC oil ministers met to effectively rubber-stamp a done deal, bemoaning the Russia-Saudi dominance of the group's affairs. But by Monday evening, he had thrown his support behind the deal: "The meeting was good for Iran and we achieved what we wanted." OPEC and Russia have become unlikely bedfellows, forging an "OPEC+" alliance to reduce global crude supply to counter soaring output from the United States and a weakening world economy. It is a marriage of convenience as both want higher oil prices to shore up their finances, while the alliance could also strengthen OPEC's position in the face of Trump's demands. "I don't think Russia is calling the shots," said Saudi Energy Minister Khalid al-Falih when asked if Putin was now OPEC's boss. "I think Russia's influence is welcome." Iran's veteran OPEC governor Hossein Kazempour Ardebili concurred, echoing his boss Zanganeh's conciliatory tone. "Russia is a big player. If it announced something in agreement with the rest of OPEC, this is most welcome," he said. "We are working together." Iraq, which has overtaken Iran as OPEC's second-largest producer after Saudi Arabia and has taken its market share in Europe and Asia, also said Moscow's rising role was positive. Such a chorus of approval is a sharp reversal for relations between OPEC and Russia that have been characterised by antipathy and distrust for decades. Back in 2001, Russia agreed to cut production in tandem with OPEC but never delivered on its pledges and instead raised output. That severely damaged relations and other attempts at cooperation were unsuccessful - until the recent alliance. In his book "Out of the Desert", former Saudi Oil Minister Ali al Naimi wrote that his 2014 meeting with Russian officials lasted just minutes. Upon learning Russia would not cut output, he gathered his papers and said: "I think the meeting is over." Changing dynamics Putin announced on Saturday that he had met Saudi Crown Prince Mohammed bin Salman on the sidelines of a G20 meeting in Osaka and they had agreed to extend the OPEC+ production cuts. Gary Ross, chief executive of Black Gold Investors, said that even if it was "indelicate" for Saudi Arabia to let Putin announce the deal, it showed the changing oil market dynamics. "Trump has one interest – low oil prices. Putin wants higher prices," said Ross, a veteran OPEC watcher. "Putin is vitally important for OPEC. And it is still in Russia's best interest to cooperate with OPEC as half its budget comes from energy revenues." Russia needs prices of $45-50 a barrel to balance its budget and its finances are stretched by U.S. sanctions imposed following its annexation of Crimea. Saudi Arabia needs an even higher price of $80. Benchmark Brent crude is currently in the region of $65 a barrel. But just as the collaboration could lend Saudi Arabia some support against Trump, who has demanded Riyadh increase oil supply if it wants U.S. military support in its standoff with regional rival Iran, it also gives Putin more than extra revenues. Good relations with Riyadh, an American ally, bolsters Moscow's clout in the Middle East, helps Putin's campaign in Syria and might even help mend relations with Washington, according to two sources in Russia's delegation to Vienna, where OPEC officials have been meeting. Highlighting those intersecting roles, Russian Energy Minister Alexander Novak also serves as head of several Russian government commissions on trade and cooperation including with Saudi Arabia, Iran, Turkey and Qatar. Iran's change in tone, in particular, illustrates the conflicting political and economic pressures it faces. Tehran's falling production, due to U.S. sanctions reimposed and extended by Trump, has reduced its role within OPEC while increasing those of Saudi Arabia and non-OPEC Russia. Iran's exports plummeted to 0.3 million barrels per day in June from as much as 2.5 million bpd in April 2018. Oil output in OPEC's exempt nations But Iran is itself also looking to help from Russia, one of just a few countries that have offered to aid Tehran to counter the sanctions choking its oil trade and hammering its economy. Two Russian energy industry sources said some work was being done to boost the Iranian economy but talks were slow and difficult, without giving details of the nature of the plans.

Under pressure from Donald Trump, Organization of the Petroleum Exporting Countries embraces Vladimir Putin

<a href="https://www.wionews.com/business-economy/oil-prices-fall-on-surging-us-crude-stockpiles-economic-concerns-221236">Oil prices</a> were mixed on Tuesday as supply cuts, led by producer club OPEC, and US&nbsp;sanctions on fuel exports from Iran and Venezuela supported crude, while concerns about an economic slowdown weighed on the market.

Front-month Brent crude futures, the international benchmark for oil prices, were at $69.99 at 0637 GMT, down 12 cents, or 0.2%, from the last session's close, when they rose 2.1%.

US West Texas Intermediate (WTI) crude futures were at $59.03 per barrel, up 40 cents, or 0.7%, from their last close on Friday. WTI did not trade on Monday due to a US&nbsp;public holiday.

Prices have been supported by supply cuts led by the Organisation of the Petroleum Exporting Countries (OPEC) since the start of the year, and by political tensions in the Middle East.

OPEC and some allies including Russia are due to meet on June 25 and 26 to discuss output policy.

Beyond the output cuts, US&nbsp;bank, Citi said, "Geopolitical turmoil across the Middle East ... are likely to encourage financial investors to realign with their bullish physical counterparties."

In physical oil markets, the Middle East crude premiums hit their highest levels in years earlier this month amid falling supply.

Beyond the OPEC cuts, US&nbsp;sanctions on petroleum exports from Iran and Venezuela have tightened markets.

"Iran exports remain under pressure as US sanctions bite. This comes as OPEC appears to be heading towards extending the current production cut agreement," Citi added.

Trump last year withdrew the United States from a 2015 international nuclear deal with Iran, and Washington is ratcheting up sanctions seeking to end Tehran's international sales of crude oil and strangle its economy.

Washington has also imposed sanctions on Venezuela's oil exports, in a bid to topple the government under President Nicolas Maduro there.

Despite this, markets remain cautious amid an economic slowdown as a result of the ongoing trade war between the United States and China, which is also expected to dent fuel consumption.

"We really need to see some strong demand figures, which so far this year has not happened before we can really start listening to the bulls," said Matt Stanley, a broker at Starfuels in Dubai.

Oil prices were mixed on Tuesday as supply cuts, led by producer club OPEC, and US sanctions on fuel exports from Iran and Venezuela supported crude, while concerns about an economic slowdown weighed on the market.

Oil prices were mixed on Tuesday as supply cuts, led by producer club OPEC, and US sanctions on fuel exports from Iran and Venezuela supported crude, while concerns about an economic slowdown weighed on the market. Front-month Brent crude futures, the international benchmark for oil prices, were at $69.99 at 0637 GMT, down 12 cents, or 0.2%, from the last session's close, when they rose 2.1%. US West Texas Intermediate (WTI) crude futures were at $59.03 per barrel, up 40 cents, or 0.7%, from their last close on Friday. WTI did not trade on Monday due to a US public holiday. Prices have been supported by supply cuts led by the Organisation of the Petroleum Exporting Countries (OPEC) since the start of the year, and by political tensions in the Middle East. OPEC and some allies including Russia are due to meet on June 25 and 26 to discuss output policy. Beyond the output cuts, US bank, Citi said, "Geopolitical turmoil across the Middle East ... are likely to encourage financial investors to realign with their bullish physical counterparties." In physical oil markets, the Middle East crude premiums hit their highest levels in years earlier this month amid falling supply. Beyond the OPEC cuts, US sanctions on petroleum exports from Iran and Venezuela have tightened markets. "Iran exports remain under pressure as US sanctions bite. This comes as OPEC appears to be heading towards extending the current production cut agreement," Citi added. Trump last year withdrew the United States from a 2015 international nuclear deal with Iran, and Washington is ratcheting up sanctions seeking to end Tehran's international sales of crude oil and strangle its economy. Washington has also imposed sanctions on Venezuela's oil exports, in a bid to topple the government under President Nicolas Maduro there. Despite this, markets remain cautious amid an economic slowdown as a result of the ongoing trade war between the United States and China, which is also expected to dent fuel consumption. "We really need to see some strong demand figures, which so far this year has not happened before we can really start listening to the bulls," said Matt Stanley, a broker at Starfuels in Dubai.

Oil mixed as OPEC cuts, US sanctions prop up prices while trade war weighs

Oil prices fell on Wednesday after industry data showed an increase in US crude inventories and as Saudi Arabia pledged to keep markets balanced.

Brent crude futures were down 38 cents, or 0.5 per cent, at $71.80 at barrel by 0219 GMT, having risen 21 cents on Tuesday.

US West Texas Intermediate (WTI) crude futures for July delivery were down 58 cents, or 0.9 per cent, at $62.55. The June contract expired on Tuesday, settling at $62.99 a barrel, down 11 cents.

The American Petroleum Institute(API) said on Tuesday that US&nbsp;crude stockpiles rose by 2.4 million barrels last week, to 480.2 million barrels, compared with analysts' expectations for a decrease of 599,000 barrels.

Official data from the US Energy Information Administration's oil stockpiles report is due later on Wednesday.

Outside the United States, Saudi Arabia on Wednesday said it was committed to a balanced and sustainable oil market.

Saudi Arabia has been at the forefront of supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC), of which the kingdom is the de-facto leader, which started in January and are aimed at reducing global oversupply that emerged in 2018.

Because of the cuts, Bank of America Merrill Lynch said crude output by OPEC and its allies fell by 2.3 million barrels per day (bpd) between November 2018 and April 2019. That has helped push up Brent crude prices by more than a third since the start of the year.

The bank said some of the cuts' impact was offset by a slowdown in global oil demand growth due to trade tensions to just 0.7 million bpd in the fourth quarter of 2018 and the first quarter of this year, versus a five-year average of 1.5 million bpd.

Beyond market fundamentals, oil traders are eying the tensions between the United States and Iran.

US President Donald Trump on Monday threatened Iran with "great force" if it attacked US interests in the Middle East.

On Tuesday, acting US Defense Secretary Patrick Shanahan said threats from Iran remained high.

Tensions have risen since Trump re-imposed sanctions on Iranian oil exports to try to strangle the country's economy and force Tehran to halt its nuclear programme. 
&nbsp;

Oil prices fell on Wednesday after industry data showed an increase in US crude inventories and as Saudi Arabia pledged to keep markets balanced. Brent crude futures were down 38 cents, or 0.

Oil prices fell on Wednesday after industry data showed an increase in US crude inventories and as Saudi Arabia pledged to keep markets balanced. Brent crude futures were down 38 cents, or 0.5 per cent, at $71.80 at barrel by 0219 GMT, having risen 21 cents on Tuesday. US West Texas Intermediate (WTI) crude futures for July delivery were down 58 cents, or 0.9 per cent, at $62.55. The June contract expired on Tuesday, settling at $62.99 a barrel, down 11 cents. The American Petroleum Institute(API) said on Tuesday that US crude stockpiles rose by 2.4 million barrels last week, to 480.2 million barrels, compared with analysts' expectations for a decrease of 599,000 barrels. Official data from the US Energy Information Administration's oil stockpiles report is due later on Wednesday. Outside the United States, Saudi Arabia on Wednesday said it was committed to a balanced and sustainable oil market. Saudi Arabia has been at the forefront of supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC), of which the kingdom is the de-facto leader, which started in January and are aimed at reducing global oversupply that emerged in 2018. Because of the cuts, Bank of America Merrill Lynch said crude output by OPEC and its allies fell by 2.3 million barrels per day (bpd) between November 2018 and April 2019. That has helped push up Brent crude prices by more than a third since the start of the year. The bank said some of the cuts' impact was offset by a slowdown in global oil demand growth due to trade tensions to just 0.7 million bpd in the fourth quarter of 2018 and the first quarter of this year, versus a five-year average of 1.5 million bpd. Beyond market fundamentals, oil traders are eying the tensions between the United States and Iran. US President Donald Trump on Monday threatened Iran with "great force" if it attacked US interests in the Middle East. On Tuesday, acting US Defense Secretary Patrick Shanahan said threats from Iran remained high. Tensions have risen since Trump re-imposed sanctions on Iranian oil exports to try to strangle the country's economy and force Tehran to halt its nuclear programme.

Oil slides on rising US crude stockpiles, Saudi Arabia vow to keep market balanced

Oil&nbsp;rose to multi-week highs on Monday after OPEC indicated it will likely maintain production cuts that have helped support prices this year, while tensions continued to escalate in the Middle East.

Brent crude was up by 96 cents, or 1.3%, at $73.17 a barrel by 0227 GMT, having earlier touched $73.40, the highest since April 26.

US West Texas Intermediate crude was 82 cents, 1.3%, higher at $63.58 a barrel. The US&nbsp;benchmark reached $63.81 earlier, the highest since May 1.

<a href="https://www.wionews.com/world/saudis-falih-says-oil-stocks-still-building-but-opec-to-act-if-needed-219637">Saudi Energy Minister Khalid al-Falih </a>said on Sunday there was the consensus among the Organization of the Petroleum Exporting Countries (OPEC) and allied&nbsp;oil&nbsp;producers to drive down crude inventories "gently" but he would remain responsive to the needs of a "fragile market."

United Arab Emirates (UAE) Energy Minister Suhail al-Mazrouei earlier told reporters that producers were capable of filling any market gap and that relaxing supply cut was not "the right decision."

Meanwhile, US&nbsp;President Donald Trump threatened Tehran on Sunday, tweeting that a conflict would be the "official end" of Iran, while Saudi Arabia said it was ready to respond with "all strength" and that it was up to Iran to avoid war.

The rhetoric follows last week's attacks on Saudi&nbsp;oil&nbsp;assets and the firing of a rocket on Sunday into Baghdad's heavily fortified "Green Zone" that exploded near the US&nbsp;embassy.

"Al-Falih and the UAE both put paid to suggestions of increasing production over the weekend and then President Trump essentially telling Iran to bring it on, was a perfect short-term storm for&nbsp;oil&nbsp;prices," Greg McKenna, strategist at McKenna Macro, told Reuters by email.

OPEC, Russia and other non-member producers, an alliance known as OPEC+, agreed to reduce output by 1.2 million barrels per day (bpd) from January&nbsp;1 for six months to prevent inventories from increasing and weakening prices.

"This second half, our preference is to maintain production management to keep inventories on their way declining gradually, softly but certainly declining towards normal levels," al-Falih told a news conference after OPEC and other producers met.

Russian Energy Minister Alexander Novak earlier said an easing of cuts had been discussed and the supply situation would be clearer in a month, including from countries under sanctions.

Another bullish signal was the second week of declines in US&nbsp;drilling operations, with energy companies cutting&nbsp;oil&nbsp;rigs to the lowest since March 2018.

The rig count, an early indicator of future output, fell by 3 to 802, General Electric Co's Baker Hughes energy services unit said on Friday.

Oil rose to multi-week highs on Monday after OPEC indicated it will likely maintain production cuts that have helped support prices this year, while tensions continued to escalate in the Middle East.

Oil rose to multi-week highs on Monday after OPEC indicated it will likely maintain production cuts that have helped support prices this year, while tensions continued to escalate in the Middle East. Brent crude was up by 96 cents, or 1.3%, at $73.17 a barrel by 0227 GMT, having earlier touched $73.40, the highest since April 26. US West Texas Intermediate crude was 82 cents, 1.3%, higher at $63.58 a barrel. The US benchmark reached $63.81 earlier, the highest since May 1. Saudi Energy Minister Khalid al-Falih said on Sunday there was the consensus among the Organization of the Petroleum Exporting Countries (OPEC) and allied oil producers to drive down crude inventories "gently" but he would remain responsive to the needs of a "fragile market." United Arab Emirates (UAE) Energy Minister Suhail al-Mazrouei earlier told reporters that producers were capable of filling any market gap and that relaxing supply cut was not "the right decision." Meanwhile, US President Donald Trump threatened Tehran on Sunday, tweeting that a conflict would be the "official end" of Iran, while Saudi Arabia said it was ready to respond with "all strength" and that it was up to Iran to avoid war. The rhetoric follows last week's attacks on Saudi oil assets and the firing of a rocket on Sunday into Baghdad's heavily fortified "Green Zone" that exploded near the US embassy. "Al-Falih and the UAE both put paid to suggestions of increasing production over the weekend and then President Trump essentially telling Iran to bring it on, was a perfect short-term storm for oil prices," Greg McKenna, strategist at McKenna Macro, told Reuters by email. OPEC, Russia and other non-member producers, an alliance known as OPEC+, agreed to reduce output by 1.2 million barrels per day (bpd) from January 1 for six months to prevent inventories from increasing and weakening prices. "This second half, our preference is to maintain production management to keep inventories on their way declining gradually, softly but certainly declining towards normal levels," al-Falih told a news conference after OPEC and other producers met. Russian Energy Minister Alexander Novak earlier said an easing of cuts had been discussed and the supply situation would be clearer in a month, including from countries under sanctions. Another bullish signal was the second week of declines in US drilling operations, with energy companies cutting oil rigs to the lowest since March 2018. The rig count, an early indicator of future output, fell by 3 to 802, General Electric Co's Baker Hughes energy services unit said on Friday.

Oil surges after OPEC indicates it will maintain output cuts

Oil edged higher to $73 a barrel on Friday, supported by a host of supply cuts and concern of further disruption to Middle East shipments as tensions rise, and was heading for a weekly gain.

<a href="https://www.wionews.com/world/iran-urges-china-russia-concrete-action-to-save-nuclear-deal-219407">US sanctions on Iran</a> have cut the OPEC member's crude exports further in May, adding to supply curbs resulting from an OPEC-led pact. Meanwhile, rising tension in the Middle East this week has raised a concern about additional supply disruption.

Brent crude was up 43 cents to $73.05 a barrel at 1101 GMT. The global benchmark is up about 3 per cent this week, having ended last week steady and fallen the week before. US West Texas Intermediate crude added 60 cents to $63.47.

"The Middle East is acting as a tinderbox for conflict," said Stephen Brennock of oil broker PVM. "So long as this remains the case, the energy complex will continue to be supported by bullish supply-side signals."

The mounting tension overshadowed bearish developments for oil prices this week, such as an unexpected increase in US crude inventories.

A Saudi-led military coalition in Yemen carried out several air strikes on the Houthi-held capital Sanaa on Thursday after the Iranian-aligned movement claimed responsibility for drone attacks on two Saudi oil pumping stations.

Earlier this week, staff were evacuated from the US embassy in Baghdad, while US President Donald Trump ordered the deployment of an aircraft carrier group, B-52 bombers and Patriot missiles to the Middle East.

"When tensions are this high, with the US deploying a sizable military force, even a mistake or a tactical error by Iran could ignite the Middle East powder keg," Stephen Innes, head of trading and market strategy at SPI Asset Management, told Reuters by email.

"There are lots of supply risks with tensions this high."

Besides the drop in Iranian exports, Russian shipments have been disrupted and the North Sea - home to the crude underpinning Brent futures - is seeing tighter supply due to oilfield maintenance and outages.

The market is also awaiting a decision from the Organization of the Petroleum Exporting Countries (OPEC) and other producers over whether to continue with supply cuts that have boosted prices more than 30% so far this year.

A meeting of an OPEC-led ministerial committee in Saudi Arabia this weekend will assess member states' commitment to their deal reducing oil production and may make a recommendation on whether to extend or adjust the pact.

Oil edged higher to $73 a barrel on Friday, supported by a host of supply cuts and concern of further disruption to Middle East shipments as tensions rise, and was heading for a weekly gain.

Oil edged higher to $73 a barrel on Friday, supported by a host of supply cuts and concern of further disruption to Middle East shipments as tensions rise, and was heading for a weekly gain. US sanctions on Iran have cut the OPEC member's crude exports further in May, adding to supply curbs resulting from an OPEC-led pact. Meanwhile, rising tension in the Middle East this week has raised a concern about additional supply disruption. Brent crude was up 43 cents to $73.05 a barrel at 1101 GMT. The global benchmark is up about 3 per cent this week, having ended last week steady and fallen the week before. US West Texas Intermediate crude added 60 cents to $63.47. "The Middle East is acting as a tinderbox for conflict," said Stephen Brennock of oil broker PVM. "So long as this remains the case, the energy complex will continue to be supported by bullish supply-side signals." The mounting tension overshadowed bearish developments for oil prices this week, such as an unexpected increase in US crude inventories. A Saudi-led military coalition in Yemen carried out several air strikes on the Houthi-held capital Sanaa on Thursday after the Iranian-aligned movement claimed responsibility for drone attacks on two Saudi oil pumping stations. Earlier this week, staff were evacuated from the US embassy in Baghdad, while US President Donald Trump ordered the deployment of an aircraft carrier group, B-52 bombers and Patriot missiles to the Middle East. "When tensions are this high, with the US deploying a sizable military force, even a mistake or a tactical error by Iran could ignite the Middle East powder keg," Stephen Innes, head of trading and market strategy at SPI Asset Management, told Reuters by email. "There are lots of supply risks with tensions this high." Besides the drop in Iranian exports, Russian shipments have been disrupted and the North Sea - home to the crude underpinning Brent futures - is seeing tighter supply due to oilfield maintenance and outages. The market is also awaiting a decision from the Organization of the Petroleum Exporting Countries (OPEC) and other producers over whether to continue with supply cuts that have boosted prices more than 30% so far this year. A meeting of an OPEC-led ministerial committee in Saudi Arabia this weekend will assess member states' commitment to their deal reducing oil production and may make a recommendation on whether to extend or adjust the pact.

Oil lifted to $73 by real and threatened supply cuts

Oil prices were near 2019 highs on Tuesday after Washington announced all Iran sanction waivers would end by May, pressuring importers to stop buying from Tehran.

Despite the move by Washington, observers like US bank Goldman Sachs said global oil markets would be able to cope with the Iran disruption as there was enough spare capacity from other suppliers.

Brent crude futures were at $74.29 per barrel at 0442 GMT, up 0.3 per cent from their last close and not far off a 2019 peak of $74.52 reached on Monday.

US West Texas Intermediate (WTI) crude futures hit their highest level since October 2018 at $65.95 per barrel before edging back to $65.86 by 0239 GMT, which was still up 0.5 per cent from their last settlement.

The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, ending six months of waivers which allowed Iran's eight biggest buyers, most of them in Asia, to continue importing limited volumes.

Before the reimposition of sanctions last year, Iran was the fourth-largest producer among the Organization of the Petroleum Exporting Countries (OPEC) at around 3 million barrels per day (bpd), but April exports have shrunk to below 1 million bpd, according to ship-tracking and analyst data in Refinitiv.

The US government has this year repeatedly said it wants to cut Iran's oil exports below 1 million barrels per day (bpd) or even to zero, and that new action would be taken by May.

Still, many analysts expected Washington to show more leniency towards importers most exposed to Iran.

Barclay's bank said in a note following the announcement that the decision took many market participants by surprise and that the move would "lead to a significant tightening of oil markets".

The British bank added that Washington's target to cut Iran oil exports to zero posed a "material upside risk to our current $70 per barrel average price forecast for Brent this year, compared with the year-to-date average of $65 per barrel".

The move to tighten Iran sanctions comes amid other sanctions Washington has placed on Venezuela's oil exports and also as producer club OPEC has led supply cuts since the start of the year aimed at tightening global oil markets and propping up crude prices.

Ellen Wald, non-resident senior fellow at the Global Energy Center of the Atlantic Council, said the United States "seems to expect" Saudi Arabia and the United Arab Emirates to replace the Iranian oil, but she added, "that this is not necessarily the way Saudi Arabia sees it".

Saudi Arabia is the world's biggest exporter of crude oil and OPEC's de-facto leader. The group is set to meet in June to discuss its output policy.

US bank Goldman Sachs said an expected decline of 900,000 bpd in Iranian exports following the US decision to end all waivers stood "versus immediately available and demonstrated spare capacity of 2.0 million bpd, which is set to grow further later this year", especially should OPEC end its supply restraint.

Meanwhile, the Atlantic Council said the US move would hurt Iranian citizens.

"We're going to see their currency collapse more, more unemployment, more inflation," said Barbara Slavin, director for the Future of Iran Initiative at the Atlantic Council, adding that the US sanctions were "not going to bring Iran back to the (nuclear) negotiating table".

Oil prices were near 2019 highs on Tuesday after Washington announced all Iran sanction waivers would end by May, pressuring importers to stop buying from Tehran.

Oil prices were near 2019 highs on Tuesday after Washington announced all Iran sanction waivers would end by May, pressuring importers to stop buying from Tehran. Despite the move by Washington, observers like US bank Goldman Sachs said global oil markets would be able to cope with the Iran disruption as there was enough spare capacity from other suppliers. Brent crude futures were at $74.29 per barrel at 0442 GMT, up 0.3 per cent from their last close and not far off a 2019 peak of $74.52 reached on Monday. US West Texas Intermediate (WTI) crude futures hit their highest level since October 2018 at $65.95 per barrel before edging back to $65.86 by 0239 GMT, which was still up 0.5 per cent from their last settlement. The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, ending six months of waivers which allowed Iran's eight biggest buyers, most of them in Asia, to continue importing limited volumes. Before the reimposition of sanctions last year, Iran was the fourth-largest producer among the Organization of the Petroleum Exporting Countries (OPEC) at around 3 million barrels per day (bpd), but April exports have shrunk to below 1 million bpd, according to ship-tracking and analyst data in Refinitiv. The US government has this year repeatedly said it wants to cut Iran's oil exports below 1 million barrels per day (bpd) or even to zero, and that new action would be taken by May. Still, many analysts expected Washington to show more leniency towards importers most exposed to Iran. Barclay's bank said in a note following the announcement that the decision took many market participants by surprise and that the move would "lead to a significant tightening of oil markets". The British bank added that Washington's target to cut Iran oil exports to zero posed a "material upside risk to our current $70 per barrel average price forecast for Brent this year, compared with the year-to-date average of $65 per barrel". The move to tighten Iran sanctions comes amid other sanctions Washington has placed on Venezuela's oil exports and also as producer club OPEC has led supply cuts since the start of the year aimed at tightening global oil markets and propping up crude prices. Ellen Wald, non-resident senior fellow at the Global Energy Center of the Atlantic Council, said the United States "seems to expect" Saudi Arabia and the United Arab Emirates to replace the Iranian oil, but she added, "that this is not necessarily the way Saudi Arabia sees it". Saudi Arabia is the world's biggest exporter of crude oil and OPEC's de-facto leader. The group is set to meet in June to discuss its output policy. US bank Goldman Sachs said an expected decline of 900,000 bpd in Iranian exports following the US decision to end all waivers stood "versus immediately available and demonstrated spare capacity of 2.0 million bpd, which is set to grow further later this year", especially should OPEC end its supply restraint. Meanwhile, the Atlantic Council said the US move would hurt Iranian citizens. "We're going to see their currency collapse more, more unemployment, more inflation," said Barbara Slavin, director for the Future of Iran Initiative at the Atlantic Council, adding that the US sanctions were "not going to bring Iran back to the (nuclear) negotiating table".

Oil near 2019 highs as US seeks to slash Iran exports, but global supply seen ample

Oil&nbsp;rose&nbsp;towards&nbsp;$80 a barrel on Tuesday, supported by concern that falling Venezuelan crude output and a potential drop in Iranian exports could further tighten global supply.

Crude is trading at the highest since late 2014, underpinned by a&nbsp;supply-cutting deal among the Organization of the Petroleum Exporting Countries plus Russia and other non-members, and strong global demand.

Brent crude, the global benchmark, rose 54 cents to $79.76 a barrel by 1221 GMT. Last week, it topped $80 for the first time since November 2014.

US&nbsp;crude was up 31 cents at $72.55, having earlier traded at $72.72, its highest since November 2014.

"The solid global economy, selected&nbsp;supply&nbsp;disruptions and the upbeat market mood in particular in&nbsp;oil&nbsp;frame a positive environment," said Norbert Ruecker, head of commodities and macro research at Julius Baer.

The US&nbsp;government imposed new sanctions on Venezuela following Sunday's re-election of President Nicolas Maduro, a move that analysts say could further curb the country's&nbsp;oil&nbsp;output already at its lowest in decades.

"We can expect continued falling Venezuelan production," said Tony Nunan,&nbsp;oil&nbsp;risk manager at Mitsubishi Corporation in Tokyo.

Concern about a potential drop in Iranian&nbsp;oil&nbsp;exports following Washington's exit from a nuclear deal with Tehran and the threat of US&nbsp;sanctions is also supporting prices. On Monday, the United States hardened its approach to Iran.

Venezuela and Iran are members of OPEC, which with its allies has curbed production since January 2017 to get rid of a&nbsp;supply&nbsp;glut that in mid-2014 led to a price collapse.

Due in part to the involuntary drop in Venezuela's output, OPEC is over-delivering on the agreement. Saudi Arabia and other major OPEC producers could, in theory, add more&nbsp;supply, but have yet to do so.

The OPEC-led&nbsp;supply&nbsp;curbs have largely cleared an inventory surplus in industrialised countries based on the deal's original goals, and stocks continue to decline.

US&nbsp;crude stockpiles are forecast to have declined by 2.8 million barrels last week, a third straight weekly fall. The American Petroleum Institute's inventory report for the period is due at 2030 GMT.

Limiting the upward pressure on prices is rising&nbsp;supply&nbsp;in the United States, where shale production is forecast to hit a record high in June.

Crude oil is trading at the highest since late 2014, underpinned by a supply-cutting deal among the Organization of the Petroleum Exporting Countries plus Russia and other non-members, and strong global demand

Oil rose towards $80 a barrel on Tuesday, supported by concern that falling Venezuelan crude output and a potential drop in Iranian exports could further tighten global supply. Crude is trading at the highest since late 2014, underpinned by a supply-cutting deal among the Organization of the Petroleum Exporting Countries plus Russia and other non-members, and strong global demand. Brent crude, the global benchmark, rose 54 cents to $79.76 a barrel by 1221 GMT. Last week, it topped $80 for the first time since November 2014. US crude was up 31 cents at $72.55, having earlier traded at $72.72, its highest since November 2014. "The solid global economy, selected supply disruptions and the upbeat market mood in particular in oil frame a positive environment," said Norbert Ruecker, head of commodities and macro research at Julius Baer. The US government imposed new sanctions on Venezuela following Sunday's re-election of President Nicolas Maduro, a move that analysts say could further curb the country's oil output already at its lowest in decades. "We can expect continued falling Venezuelan production," said Tony Nunan, oil risk manager at Mitsubishi Corporation in Tokyo. Concern about a potential drop in Iranian oil exports following Washington's exit from a nuclear deal with Tehran and the threat of US sanctions is also supporting prices. On Monday, the United States hardened its approach to Iran. Venezuela and Iran are members of OPEC, which with its allies has curbed production since January 2017 to get rid of a supply glut that in mid-2014 led to a price collapse. Due in part to the involuntary drop in Venezuela's output, OPEC is over-delivering on the agreement. Saudi Arabia and other major OPEC producers could, in theory, add more supply, but have yet to do so. The OPEC-led supply curbs have largely cleared an inventory surplus in industrialised countries based on the deal's original goals, and stocks continue to decline. US crude stockpiles are forecast to have declined by 2.8 million barrels last week, a third straight weekly fall. The American Petroleum Institute's inventory report for the period is due at 2030 GMT. Limiting the upward pressure on prices is rising supply in the United States, where shale production is forecast to hit a record high in June.

Oil rises towards $80 as supply concerns mount

Oil prices extended gains to hit their highest level in nearly two weeks on Monday, buoyed as Asian shares joined a global recovery in equity markets and as worries grew over tensions in the Middle East.

Prime Minister Benjamin Netanyahu said on Sunday that Israel could act against Iran itself, not just its allies in the Middle East, after border incidents in Syria brought the Middle East foes closer to direct confrontation.

US&nbsp;West Texas Intermediate crude for March delivery was up 73 cents, or 1.2 per cent, at $62.41 a barrel by 0600 GMT, after earlier touching its highest since February 7.

London Brent crude was up 52 cents, or 0.8 percent, at $65.36, after rising more than 3 per cent last week.

&quot;The upside momentum since WTI hit last week&#39;s low of $58 has been continuing,&quot; said Tetsu Emori, CEO of Emori Capital Management in Tokyo.

&quot;Oil got mild support from gains in Asian equity markets, but has been getting pressure from the rise in US&nbsp;rig count and a slight recovery in the dollar.&quot;

Trading is expected to be slower than usual due market holidays in the United States as well as Greater China.

The US&nbsp;oil rig count, an indicator of future production, rose by seven to 798, its highest since April 2015, according to a weekly report from General Electric&#39;s Baker Hughes unit.

That marked the first time since June that drillers added rigs for four consecutive weeks, and the figure was well up on the 597 rigs that were active a year earlier as energy companies have boosted spending since mid-2016 when crude prices began recovering from a two-year crash.

Surging US&nbsp;production is offsetting efforts by the Organization of the Petroleum Exporting Countries (OPEC) and some other producers including Russia to curb production by 1.8 million barrels per day (bpd) until the end of 2018.

Money managers slashed their bullish wagers on ICE Brent crude oil futures by the most in nearly eight months in the week to February 13, data showed, as prices plunged amid concerns of oversupply.

Speculators also cut net long US&nbsp;crude futures and options positions in the week to February 13 by the most since late August, the US&nbsp;Commodity Futures Trading Commission (CFTC) said.

London Brent crude was up 52 cents, or 0.8 percent, at $65.36, after rising more than 3 percent last week

Oil prices extended gains to hit their highest level in nearly two weeks on Monday, buoyed as Asian shares joined a global recovery in equity markets and as worries grew over tensions in the Middle East. Prime Minister Benjamin Netanyahu said on Sunday that Israel could act against Iran itself, not just its allies in the Middle East, after border incidents in Syria brought the Middle East foes closer to direct confrontation. US West Texas Intermediate crude for March delivery was up 73 cents, or 1.2 per cent, at $62.41 a barrel by 0600 GMT, after earlier touching its highest since February 7. London Brent crude was up 52 cents, or 0.8 percent, at $65.36, after rising more than 3 per cent last week. "The upside momentum since WTI hit last week's low of $58 has been continuing," said Tetsu Emori, CEO of Emori Capital Management in Tokyo. "Oil got mild support from gains in Asian equity markets, but has been getting pressure from the rise in US rig count and a slight recovery in the dollar." Trading is expected to be slower than usual due market holidays in the United States as well as Greater China. The US oil rig count, an indicator of future production, rose by seven to 798, its highest since April 2015, according to a weekly report from General Electric's Baker Hughes unit. That marked the first time since June that drillers added rigs for four consecutive weeks, and the figure was well up on the 597 rigs that were active a year earlier as energy companies have boosted spending since mid-2016 when crude prices began recovering from a two-year crash. Surging US production is offsetting efforts by the Organization of the Petroleum Exporting Countries (OPEC) and some other producers including Russia to curb production by 1.8 million barrels per day (bpd) until the end of 2018. Money managers slashed their bullish wagers on ICE Brent crude oil futures by the most in nearly eight months in the week to February 13, data showed, as prices plunged amid concerns of oversupply. Speculators also cut net long US crude futures and options positions in the week to February 13 by the most since late August, the US Commodity Futures Trading Commission (CFTC) said.

Oil hits highest in nearly two weeks on Asian equity recovery

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