Oil prices fell on Monday, extending last week's heavy losses, with traders fearing the global economic slowdown will weigh on future oil demand growth while pegging hopes for a rebound on progress in talks this week on ending the US-China trade war.

Brent crude futures edged down 28 cents to $58.09 a barrel by 0300 GMT, while US West Texas Intermediate (WTI) crude was at $52.64, down 17 cents.

Both contracts ended last week with a more-than-5% decline after dismal manufacturing data from the United States and China, as the lingering row between the world's top economies hurts global growth and raises the risk of recession.

US and Chinese officials will meet in Washington on October 10-11 in the next, much-anticipated fresh effort to work out a deal.

On the supply side, a faster-than-expected resumption in Saudi Arabia's production after a September 14 attack on key production facilities also exerted downward pressure on oil prices, although the Middle East remained tense.

"The macro headwinds outweigh supply concerns for oil now, despite tensions in the Middle East and a reduced spare capacity pillow," said Stephen Innes, Asia Pacific market strategist at AxiCorp.

In Iraq, the second-largest producer among the Organization of the Petroleum Exporting Countries, deadly anti-government unrest is posing the biggest security and political challenge so far to Prime Minister Adel Abdul Mahdi's year-old government.

Iraq's oil exports of 3.43 million barrels per day (bpd) from Basra terminals could be disrupted if instability lasts for weeks, Ayham Kamel, Eurasia Group's practice head for Middle East and North Africa, said in a note.

"Any oil production disruption would occur at a time when Saudi Arabia has lost a significant part of its energy system redundancies (spare capacity)," he said.

"While Saudi oil production is now close to 9.9 million bpd, it is not clear that the capacity is fully operational at 11.3 million bpd and the (attacked) Abqaiq facility has lost a significant part of its redundancy."

Global supply also faces facility repair and maintenance pressures.

The Buzzard oil field in the British North Sea has been shut for pipe repair work, a spokesman from China's CNOOC said on Friday. Buzzard is the main contributor to the Forties crude stream, the largest of the five North Sea oil grades that underpin Brent crude futures.

Meanwhile Libya's National Oil Corporation (NOC) said on Sunday it will close the Faregh oil field at Zueitina port for scheduled maintenance from Monday until October 14.

Oil prices fell on Monday, extending last week's heavy losses, with traders fearing the global economic slowdown will weigh on future oil demand growth while pegging hopes for a rebound on progress in talks this week on ending the US-China trade war.

Oil prices fell on Monday, extending last week's heavy losses, with traders fearing the global economic slowdown will weigh on future oil demand growth while pegging hopes for a rebound on progress in talks this week on ending the US-China trade war. Brent crude futures edged down 28 cents to $58.09 a barrel by 0300 GMT, while US West Texas Intermediate (WTI) crude was at $52.64, down 17 cents. Both contracts ended last week with a more-than-5% decline after dismal manufacturing data from the United States and China, as the lingering row between the world's top economies hurts global growth and raises the risk of recession. US and Chinese officials will meet in Washington on October 10-11 in the next, much-anticipated fresh effort to work out a deal. On the supply side, a faster-than-expected resumption in Saudi Arabia's production after a September 14 attack on key production facilities also exerted downward pressure on oil prices, although the Middle East remained tense. "The macro headwinds outweigh supply concerns for oil now, despite tensions in the Middle East and a reduced spare capacity pillow," said Stephen Innes, Asia Pacific market strategist at AxiCorp. In Iraq, the second-largest producer among the Organization of the Petroleum Exporting Countries, deadly anti-government unrest is posing the biggest security and political challenge so far to Prime Minister Adel Abdul Mahdi's year-old government. Iraq's oil exports of 3.43 million barrels per day (bpd) from Basra terminals could be disrupted if instability lasts for weeks, Ayham Kamel, Eurasia Group's practice head for Middle East and North Africa, said in a note. "Any oil production disruption would occur at a time when Saudi Arabia has lost a significant part of its energy system redundancies (spare capacity)," he said. "While Saudi oil production is now close to 9.9 million bpd, it is not clear that the capacity is fully operational at 11.3 million bpd and the (attacked) Abqaiq facility has lost a significant part of its redundancy." Global supply also faces facility repair and maintenance pressures. The Buzzard oil field in the British North Sea has been shut for pipe repair work, a spokesman from China's CNOOC said on Friday. Buzzard is the main contributor to the Forties crude stream, the largest of the five North Sea oil grades that underpin Brent crude futures. Meanwhile Libya's National Oil Corporation (NOC) said on Sunday it will close the Faregh oil field at Zueitina port for scheduled maintenance from Monday until October 14.

Oil prices on ebb tide as gloom gathers over global economy

Oil fell on Tuesday amid worries over the outlook for demand after the latest signs that international trade disputes have been dragging on the global economy, although tensions in the Middle East offered some support to prices.

Brent crude futures were down 21 cents, or 0.3%, at $63.90 a barrel by 0022 GMT. They fell 12 cents on Monday.

US West Texas Intermediate crude futures were down 20 cents, or 0.4%, at $57.46 a barrel. They rose 15 cents in the previous session.

Oil prices are being pressured by ongoing worries about demand as the US-China trade war, heading into its second year, dampens prospects for global economic growth.

Japan's core machinery orders fell by the most in eight months, data showed on Monday, in a sign the global trade tensions are taking a toll on corporate investment.

Japanese government figures on Tuesday also showed that real wages in the country fell for a fifth straight month.

"The prolonged trade war ... does not seem to be nearing a resolution, and it will keep being a negative factor for crude prices as it impacts global growth forecasts," said Alfonso Esparza, senior market analyst at OANDA in Toronto.

Meanwhile, Goldman Sachs said growth in US shale production was likely to outpace that of global demand at least through 2020, limiting gains in oil prices despite output curbs led by the Organization of the Petroleum Exporting Countries.

Prices are still susceptible to shocks from the lingering tensions in the Middle East, analyst and traders said.

Iran on Monday threatened to restart deactivated centrifuges and step up its enrichment of uranium to 20% in a move that further threatens the 2015 nuclear agreement that Washington abandoned last year.

Washington has imposed sanctions that eliminate benefits Iran was meant to receive in return for agreeing to curbs on its nuclear programme under the 2015 deal with world powers.

The confrontation has brought the United States and Iran close to conflict, with US President Donald Trump calling off air strikes last month minutes before impact.

Oil fell on Tuesday amid worries over the outlook for demand after the latest signs that international trade disputes have been dragging on the global economy, although tensions in the Middle East offered some support to prices.

Oil fell on Tuesday amid worries over the outlook for demand after the latest signs that international trade disputes have been dragging on the global economy, although tensions in the Middle East offered some support to prices. Brent crude futures were down 21 cents, or 0.3%, at $63.90 a barrel by 0022 GMT. They fell 12 cents on Monday. US West Texas Intermediate crude futures were down 20 cents, or 0.4%, at $57.46 a barrel. They rose 15 cents in the previous session. Oil prices are being pressured by ongoing worries about demand as the US-China trade war, heading into its second year, dampens prospects for global economic growth. Japan's core machinery orders fell by the most in eight months, data showed on Monday, in a sign the global trade tensions are taking a toll on corporate investment. Japanese government figures on Tuesday also showed that real wages in the country fell for a fifth straight month. "The prolonged trade war ... does not seem to be nearing a resolution, and it will keep being a negative factor for crude prices as it impacts global growth forecasts," said Alfonso Esparza, senior market analyst at OANDA in Toronto. Meanwhile, Goldman Sachs said growth in US shale production was likely to outpace that of global demand at least through 2020, limiting gains in oil prices despite output curbs led by the Organization of the Petroleum Exporting Countries. Prices are still susceptible to shocks from the lingering tensions in the Middle East, analyst and traders said. Iran on Monday threatened to restart deactivated centrifuges and step up its enrichment of uranium to 20% in a move that further threatens the 2015 nuclear agreement that Washington abandoned last year. Washington has imposed sanctions that eliminate benefits Iran was meant to receive in return for agreeing to curbs on its nuclear programme under the 2015 deal with world powers. The confrontation has brought the United States and Iran close to conflict, with US President Donald Trump calling off air strikes last month minutes before impact.

Oil prices drop as trade tensions stoke economy worries

Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July.

Those views were bolstered after solid gains in US jobs for June and pushed down Wall Street for the second straight day.

MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1% in early trade, after falling 0.6% the previous day. Japan's Nikkei rose 0.5% thanks in part to the yen's retreat against the dollar.

On Wall Street, the S&amp;P 500 lost 0.48% while the Nasdaq Composite dropped 0.78%, led by fall in Apple Inc.

Money market futures are still fully pricing in a 25 basis point cut at the Fed's next policy meeting on July 30-31, but have almost priced out a larger 50 basis point reduction.

"The headline payrolls figures was pretty strong but wages were tepid, so, on the whole, a 25 basis-point cut would be justified as a pre-emptive move and I think the current market pricing is fair," said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management.

Investors' focus is shifting to Fed Chairman Jerome Powell's testimony before Congress later in the week for clues on monetary policy.

In the currency market, fading expectations of aggressive easing by the Fed helped the dollar.

The euro traded at $1.1215, near Monday's low of $1.1207, its weakest level since June 19.

The dollar changed hands at 108.75 yen, having risen up to 108.81 yen in the previous session, its highest in more than a month.

The British pound stood at 1.2518, not far from six-month lows of $1.2481 touched on Friday.

Oil prices were slightly softer as concerns about whether slowing global economic growth would hit oil demand eclipsed tensions over Iran's nuclear programme.

Brent crude futures fell 23 cents, or 0.36% to settle at $63.88 a barrel. US West Texas Intermediate (WTI) crude futures shed 19 cents, or 0.33% to settle at $57.47 a barrel.

Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July.

Asian stocks struggled to rebound on Tuesday as investors came to terms with sharply reduced expectations the Federal Reserve will deliver a large interest rate cut at the end of July. Those views were bolstered after solid gains in US jobs for June and pushed down Wall Street for the second straight day. MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1% in early trade, after falling 0.6% the previous day. Japan's Nikkei rose 0.5% thanks in part to the yen's retreat against the dollar. On Wall Street, the S&P 500 lost 0.48% while the Nasdaq Composite dropped 0.78%, led by fall in Apple Inc. Money market futures are still fully pricing in a 25 basis point cut at the Fed's next policy meeting on July 30-31, but have almost priced out a larger 50 basis point reduction. "The headline payrolls figures was pretty strong but wages were tepid, so, on the whole, a 25 basis-point cut would be justified as a pre-emptive move and I think the current market pricing is fair," said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust Asset Management. Investors' focus is shifting to Fed Chairman Jerome Powell's testimony before Congress later in the week for clues on monetary policy. In the currency market, fading expectations of aggressive easing by the Fed helped the dollar. The euro traded at $1.1215, near Monday's low of $1.1207, its weakest level since June 19. The dollar changed hands at 108.75 yen, having risen up to 108.81 yen in the previous session, its highest in more than a month. The British pound stood at 1.2518, not far from six-month lows of $1.2481 touched on Friday. Oil prices were slightly softer as concerns about whether slowing global economic growth would hit oil demand eclipsed tensions over Iran's nuclear programme. Brent crude futures fell 23 cents, or 0.36% to settle at $63.88 a barrel. US West Texas Intermediate (WTI) crude futures shed 19 cents, or 0.33% to settle at $57.47 a barrel.

Asian stocks hobbled by fading expectations for aggressive Fed rate cut

Crude prices were little changed on Monday as traders weighed geopolitical risks against the impact of the Sino-US trade war on the global economy, although last week's better-than-expected US jobs data offered some support.

Brent crude futures were down 3 cents by 0300 GMT at $64.20. US West Texas Intermediate (WTI) was up 6 cents at $57.57 a barrel.

"A very cautious open this morning supported by a better than expected (non-farm payrolls)," said Stephen Innes, managing partner at Vanguard Markets in Bangkok. "Traders remain incredibly cautious about the dimmer global economic overhang."

Both oil benchmarks fell last week as concerns about a slowing global economy outweighed risks to supply. Brent fell more than 3% and WTI shed more than 1.5%.

US job growth rebounded strongly in June, with government payrolls surging, the Labour Department's closely watched employment report showed on Friday, suggesting May's sharp slowdown in hiring was probably a one-off.

Employers added 224,000 jobs last month, the most in five months, the report showed.

But the US-China trade war has dampened prospects of global economic growth and oil demand.

The lack of concrete progress in resolving the acrimonious trade war between the United States and China, however, means the bar could be very high for the US Federal Reserve not to lower borrowing costs at its July 30-31 policy meeting.

White House Economic advisor Larry Kudlow has confirmed top representatives from the United States and China will meet in the coming week to continue trade talks.

Still, Japan's core machinery orders fell for the first time in four months in May, posing the biggest monthly drop in eight months in a worrying sign that global trade tensions are taking a toll on corporate investment.

Oil received some support from simmering tensions over Iran and after an extension last week to output cuts by OPEC and its allies.

Iran said on Sunday it will shortly boost its uranium enrichment above a cap set by a landmark 2015 nuclear deal, prompting a warning 'to be careful' from US President Donald Trump, who pulled out of the pact last year.

"Geopolitical risks remain plentiful, but the start of the week could see Iran worries ease," said Edward Moya, senior market analyst at OANDA.

Meanwhile, US energy companies this week reduced the number of oil rigs operating for the first time in three weeks as drillers follow through on plans to cut spending this year.

Crude prices were little changed on Monday as traders weighed geopolitical risks against the impact of the Sino-US trade war on the global economy, although last week's better-than-expected US jobs data offered some support.

Crude prices were little changed on Monday as traders weighed geopolitical risks against the impact of the Sino-US trade war on the global economy, although last week's better-than-expected US jobs data offered some support. Brent crude futures were down 3 cents by 0300 GMT at $64.20. US West Texas Intermediate (WTI) was up 6 cents at $57.57 a barrel. "A very cautious open this morning supported by a better than expected (non-farm payrolls)," said Stephen Innes, managing partner at Vanguard Markets in Bangkok. "Traders remain incredibly cautious about the dimmer global economic overhang." Both oil benchmarks fell last week as concerns about a slowing global economy outweighed risks to supply. Brent fell more than 3% and WTI shed more than 1.5%. US job growth rebounded strongly in June, with government payrolls surging, the Labour Department's closely watched employment report showed on Friday, suggesting May's sharp slowdown in hiring was probably a one-off. Employers added 224,000 jobs last month, the most in five months, the report showed. But the US-China trade war has dampened prospects of global economic growth and oil demand. The lack of concrete progress in resolving the acrimonious trade war between the United States and China, however, means the bar could be very high for the US Federal Reserve not to lower borrowing costs at its July 30-31 policy meeting. White House Economic advisor Larry Kudlow has confirmed top representatives from the United States and China will meet in the coming week to continue trade talks. Still, Japan's core machinery orders fell for the first time in four months in May, posing the biggest monthly drop in eight months in a worrying sign that global trade tensions are taking a toll on corporate investment. Oil received some support from simmering tensions over Iran and after an extension last week to output cuts by OPEC and its allies. Iran said on Sunday it will shortly boost its uranium enrichment above a cap set by a landmark 2015 nuclear deal, prompting a warning 'to be careful' from US President Donald Trump, who pulled out of the pact last year. "Geopolitical risks remain plentiful, but the start of the week could see Iran worries ease," said Edward Moya, senior market analyst at OANDA. Meanwhile, US energy companies this week reduced the number of oil rigs operating for the first time in three weeks as drillers follow through on plans to cut spending this year.

Oil prices tread water as market eyes global risks

Crude oil prices fell on Friday as concerns over the outlook for global economic growth outweighed elevated tensions in the Middle East that could disrupt supply routes and send prices higher.

US West Texas Intermediate (WTI) crude futures were down 1.1% at $56.72 per barrel by 0310 GMT. There was no settlement price on Thursday because of the Independence Day holiday in the United States.

Front-month Brent crude futures were down 0.1% at $63.25 per barrel, after closing down 0.8% on Thursday.

Analysts said oil was under pressure because fears over future demand amid trade disputes threatening global economic growth. But losses were checked by commitment to cut production from the world's largest exporters - including members of the Organization of the Petroleum Exporting Countries (OPEC) and other producers such as Russia, a grouping known as OPEC+.

"Global growth remains the main factor holding back crude prices," said Alfonso Esparza, senior analyst at OANDA. "The OPEC+ deal will keep prices from falling too hard, but there must be an end to trade protectionism to assure the demand for energy products recovers."

New orders for US factory goods fell for a second straight month in May, government data showed on Wednesday, stoking economic concerns.

The US Energy Information Administration on Wednesday reported a weekly decline of 1.1 million barrels in crude stocks, much smaller than the 5 million barrel draw reported by the American Petroleum Institute earlier in the week.

That suggests oil demand in the United States, the world's biggest crude consumer, could be slowing amid signs of a weakening economy.

Countering the downward pressure, ongoing tensions in the Middle East also offered some support.

British Royal Marines seized a giant Iranian oil tanker in Gibraltar on Thursday for trying to take oil to Syria in violation of EU sanctions, a dramatic step that drew Tehran's fury and could escalate its confrontation with the West.

Crude oil prices fell on Friday as concerns over the outlook for global economic growth outweighed elevated tensions in the Middle East that could disrupt supply routes and send prices higher.

Crude oil prices fell on Friday as concerns over the outlook for global economic growth outweighed elevated tensions in the Middle East that could disrupt supply routes and send prices higher. US West Texas Intermediate (WTI) crude futures were down 1.1% at $56.72 per barrel by 0310 GMT. There was no settlement price on Thursday because of the Independence Day holiday in the United States. Front-month Brent crude futures were down 0.1% at $63.25 per barrel, after closing down 0.8% on Thursday. Analysts said oil was under pressure because fears over future demand amid trade disputes threatening global economic growth. But losses were checked by commitment to cut production from the world's largest exporters - including members of the Organization of the Petroleum Exporting Countries (OPEC) and other producers such as Russia, a grouping known as OPEC+. "Global growth remains the main factor holding back crude prices," said Alfonso Esparza, senior analyst at OANDA. "The OPEC+ deal will keep prices from falling too hard, but there must be an end to trade protectionism to assure the demand for energy products recovers." New orders for US factory goods fell for a second straight month in May, government data showed on Wednesday, stoking economic concerns. The US Energy Information Administration on Wednesday reported a weekly decline of 1.1 million barrels in crude stocks, much smaller than the 5 million barrel draw reported by the American Petroleum Institute earlier in the week. That suggests oil demand in the United States, the world's biggest crude consumer, could be slowing amid signs of a weakening economy. Countering the downward pressure, ongoing tensions in the Middle East also offered some support. British Royal Marines seized a giant Iranian oil tanker in Gibraltar on Thursday for trying to take oil to Syria in violation of EU sanctions, a dramatic step that drew Tehran's fury and could escalate its confrontation with the West.

Crude oil prices fall 1% on fears for global economy

Oil prices inched lower on Thursday after solid gains the day before, pressured by data showing a smaller-than-expected decline in US crude stockpiles.

Front-month Brent crude futures, the international benchmark for oil prices, were down 0.4% at $63.60 per barrel by 0112 GMT. Brent closed up 2.3% on Wednesday.

US West Texas Intermediate (WTI) crude futures were down 0.3% at $57.18 per barrel. WTI closed up 1.9% on Wednesday.

US crude inventories dropped by 1.1 million barrels last week, the Energy Information Administration (EIA) said on Wednesday. That compared with analyst expectations for a decrease of 3 million barrels.

"The US oil market remains oversupplied," said Edward Moya, senior analyst, OANDA.

But crude prices were underpinned after the Organization of the Petroleum Exporting Countries and other producers such as Russia, a group known as OPEC+, agreed on Tuesday to extend oil supply cuts until March 2020.

Oil prices inched lower on Thursday after solid gains the day before, pressured by data showing a smaller-than-expected decline in US crude stockpiles. Front-month Brent crude futures, the international benchmark for oil prices, were down 0.

Oil prices inched lower on Thursday after solid gains the day before, pressured by data showing a smaller-than-expected decline in US crude stockpiles. Front-month Brent crude futures, the international benchmark for oil prices, were down 0.4% at $63.60 per barrel by 0112 GMT. Brent closed up 2.3% on Wednesday. US West Texas Intermediate (WTI) crude futures were down 0.3% at $57.18 per barrel. WTI closed up 1.9% on Wednesday. US crude inventories dropped by 1.1 million barrels last week, the Energy Information Administration (EIA) said on Wednesday. That compared with analyst expectations for a decrease of 3 million barrels. "The US oil market remains oversupplied," said Edward Moya, senior analyst, OANDA. But crude prices were underpinned after the Organization of the Petroleum Exporting Countries and other producers such as Russia, a group known as OPEC+, agreed on Tuesday to extend oil supply cuts until March 2020.

Oil prices edge down, pressured by US supply

Oil fell on Thursday, erasing some of the previous session's strong gains, as traders await the G20 summit in Japan and a meeting of OPEC and other oil producers to decide on an extension of output cuts.

Brent crude futures were down 19 cents, or 0.3%, at $66.30 by 0256 GMT.

US West Texas Intermediate (WTI) crude futures were down 19 cents, or 0.3%, at $59.19.

Oil prices rose more than 2% on Wednesday to their highest in about a month, buoyed by US government data showing a larger-than-expected drawdown in crude stocks as exports hit a record high and surprise drops in refined product stockpiles.

However, traders said concerns that a hoped-for breakthrough on trade at the G20 may not eventuate and some nervousness about continued output cuts were crimping follow-through buying.

"I think the length of the speculative positioning might be stretched too tight ahead of G20 and of course OPEC," said Stephen Innes, managing partner at Vanguard Markets in Bangkok, said.

US President Donald Trump will meet with Chinese President Xi Jinping at the Group of 20 summit that starts on Friday in Osaka, Japan to seek a breakthrough in negotiations to end a trade war that has been hitting global economic growth.

Trump said on Wednesday that a deal was possible but also spoke of a Plan B that would involve reducing business ties with China.

"With Trump stirring up trade war dust via "Plan B" there is still that element of the unknown," Innes said.

Almost immediately after the G20 summit ends on Saturday, the Organization of the Petroleum Exporting Countries (OPEC) meets on Monday to discuss an extension of production cuts to support prices.

The day after that OPEC members meet with other producers including Russia in a grouping known as OPEC+, which agreed in December to reduce supply by 1.2 million barrels per day from Jan. 1. The agreement is due to expire on June 30.

Crude inventories in the United States, the largest producer and consumer of oil, fell 12.8 million barrels last week, the Energy Information Administration said, far surpassing analyst expectations for a decrease of 2.5 million barrels.

That was the most since September 2016, according to the statistical arm of the Department of Energy.

Net US crude imports fell last week by 1.2 million barrels per day (bpd). Overall crude exports rose to 3.8 million bpd, beating the previous record of 3.6 million bpd in February.

Oil fell on Thursday, erasing some of the previous session's strong gains, as traders await the G20 summit in Japan and a meeting of OPEC and other oil producers to decide on an extension of output cuts.

Oil fell on Thursday, erasing some of the previous session's strong gains, as traders await the G20 summit in Japan and a meeting of OPEC and other oil producers to decide on an extension of output cuts. Brent crude futures were down 19 cents, or 0.3%, at $66.30 by 0256 GMT. US West Texas Intermediate (WTI) crude futures were down 19 cents, or 0.3%, at $59.19. Oil prices rose more than 2% on Wednesday to their highest in about a month, buoyed by US government data showing a larger-than-expected drawdown in crude stocks as exports hit a record high and surprise drops in refined product stockpiles. However, traders said concerns that a hoped-for breakthrough on trade at the G20 may not eventuate and some nervousness about continued output cuts were crimping follow-through buying. "I think the length of the speculative positioning might be stretched too tight ahead of G20 and of course OPEC," said Stephen Innes, managing partner at Vanguard Markets in Bangkok, said. US President Donald Trump will meet with Chinese President Xi Jinping at the Group of 20 summit that starts on Friday in Osaka, Japan to seek a breakthrough in negotiations to end a trade war that has been hitting global economic growth. Trump said on Wednesday that a deal was possible but also spoke of a Plan B that would involve reducing business ties with China. "With Trump stirring up trade war dust via "Plan B" there is still that element of the unknown," Innes said. Almost immediately after the G20 summit ends on Saturday, the Organization of the Petroleum Exporting Countries (OPEC) meets on Monday to discuss an extension of production cuts to support prices. The day after that OPEC members meet with other producers including Russia in a grouping known as OPEC+, which agreed in December to reduce supply by 1.2 million barrels per day from Jan. 1. The agreement is due to expire on June 30. Crude inventories in the United States, the largest producer and consumer of oil, fell 12.8 million barrels last week, the Energy Information Administration said, far surpassing analyst expectations for a decrease of 2.5 million barrels. That was the most since September 2016, according to the statistical arm of the Department of Energy. Net US crude imports fell last week by 1.2 million barrels per day (bpd). Overall crude exports rose to 3.8 million bpd, beating the previous record of 3.6 million bpd in February.

Oil prices fall, shrugging off US inventory drop, amid G20 uncertainty

Oil prices steadied on Tuesday, caught between rising tensions in the Middle East and signs that economic growth is being hit by trade tensions between the United States and China.

Brent crude futures were up 4 cents at $60.98 a barrel by 0055 GMT. They fell 1.7% in the previous session on concerns about slowing global growth.

US West Texas Intermediate (WTI) crude futures were 1 cent lower at $51.92. They dropped 1.1% on Monday.

The New York Federal Reserve said on Monday its gauge of business growth in New York state posted a record fall this month to its weakest level in more than 2-1/2 years, suggesting an abrupt contraction in regional activity.

US business sentiment has sagged as tensions over trade have escalated between China and the United States and on signs of softness in the labour market.

"The market is in a rut and desperately in need of some robust economic data to get it out of this funk," said Stephen Innes, managing partner at Vanguard Markets in Bangkok.

Oil prices have fallen around 20% since 2019 highs reached in April, in part due to concerns about the US-China trade war and disappointing economic data.

US President Donald Trump and China's President Xi Jinping could meet at the G20 summit in Japan later this month. Trump has said he would meet Xi at the summit, although China has not confirmed the meeting.

Putting further pressure on oil, the US energy department said on Monday that shale oil output is expected to reach a record in July.

But tensions in the Middle East are likely to keep prices supported, analysts said.

Acting US Defence Secretary Patrick Shanahan announced on Monday the deployment of about 1,000 more troops to the Middle East for what he said were defensive purposes, citing concerns about a threat from Iran.

Fears of a confrontation between Iran and the United States have mounted since last Thursday when two oil tankers were attacked, which Washington has blamed on Tehran.

Oil prices steadied on Tuesday, caught between rising tensions in the Middle East and signs that economic growth is being hit by trade tensions between the United States and China.

Oil prices steadied on Tuesday, caught between rising tensions in the Middle East and signs that economic growth is being hit by trade tensions between the United States and China. Brent crude futures were up 4 cents at $60.98 a barrel by 0055 GMT. They fell 1.7% in the previous session on concerns about slowing global growth. US West Texas Intermediate (WTI) crude futures were 1 cent lower at $51.92. They dropped 1.1% on Monday. The New York Federal Reserve said on Monday its gauge of business growth in New York state posted a record fall this month to its weakest level in more than 2-1/2 years, suggesting an abrupt contraction in regional activity. US business sentiment has sagged as tensions over trade have escalated between China and the United States and on signs of softness in the labour market. "The market is in a rut and desperately in need of some robust economic data to get it out of this funk," said Stephen Innes, managing partner at Vanguard Markets in Bangkok. Oil prices have fallen around 20% since 2019 highs reached in April, in part due to concerns about the US-China trade war and disappointing economic data. US President Donald Trump and China's President Xi Jinping could meet at the G20 summit in Japan later this month. Trump has said he would meet Xi at the summit, although China has not confirmed the meeting. Putting further pressure on oil, the US energy department said on Monday that shale oil output is expected to reach a record in July. But tensions in the Middle East are likely to keep prices supported, analysts said. Acting US Defence Secretary Patrick Shanahan announced on Monday the deployment of about 1,000 more troops to the Middle East for what he said were defensive purposes, citing concerns about a threat from Iran. Fears of a confrontation between Iran and the United States have mounted since last Thursday when two oil tankers were attacked, which Washington has blamed on Tehran.

Oil prices hold steady amid Middle East tensions, weak economic data

Oil prices rose on Monday after US Secretary of State Mike Pompeo said Washington will take all actions necessary to guarantee safe navigation in the Middle East, as tensions mounted following attacks on tankers last week.

Brent futures had climbed 26 cents, or 0.4%, to $62.27 a barrel by 0314 GMT. They gained 1.1% on Friday.

US West Texas Intermediate (WTI) crude futures were up 17 cents, or 0.3%, at $52.68 a barrel. They rose 0.4% in the previous session.

Prices had jumped as much as 4.5% on Thursday after the attacks on two oil tankers near Iran and the Strait of Hormuz.

It was the second time in a month tankers have been attacked in the world's most important zone for oil supplies as tensions increase between the United States and Iran. Washington blamed Iran for Thursday's attacks, prompting a denial and criticism from Tehran.

"We don't want war. We've done what we can to deter this," Pompeo said in an interview with Fox News Sunday, adding: "The Iranians should understand very clearly that we will continue to take actions that deter Iran from engaging in this kind of behaviour".

Tensions between Iran and the United States have risen since US President Donald Trump pulled out of a deal last year between Iran and global powers that aimed to curb Tehran's nuclear ambitions in exchange for sanctions relief.

Iran has repeatedly warned it would block the Strait of Hormuz if it cannot sell its oil because of US sanctions.

"Growing tensions in the Middle East remain a cause for concern as traders fear supply disruptions over an escalation towards militaristic conflicts," said Benjamin Lu, an analyst at Phillip Futures in Singapore.

Also supporting prices were comments over the weekend by the Saudi energy minister, Khalid al-Falih, that OPEC would probably meet in the first week of July and he hoped it would reach an agreement on extending oil output curbs.

"We are hoping that we will reach consensus to extend our agreement when we meet in two weeks time in Vienna," Falih told reporters while attending a G20 energy and environment ministerial meeting in Karuizawa, northwest of Tokyo.

The Organization of the Petroleum Exporting Countries plus Russia and other producers, an alliance known as OPEC+, have a deal to cut output by 1.2 million barrels per day (bpd) from January 1. The pact ends this month and the group meets in coming weeks to decide the next move.

US energy companies also cut the number of oil rigs operating for a second week in a row, with production growth expected to slow as crude prices fell to near their lowest levels of the year.

Oil prices rose on Monday after US Secretary of State Mike Pompeo said Washington will take all actions necessary to guarantee safe navigation in the Middle East, as tensions mounted following attacks on tankers last week.

Oil prices rose on Monday after US Secretary of State Mike Pompeo said Washington will take all actions necessary to guarantee safe navigation in the Middle East, as tensions mounted following attacks on tankers last week. Brent futures had climbed 26 cents, or 0.4%, to $62.27 a barrel by 0314 GMT. They gained 1.1% on Friday. US West Texas Intermediate (WTI) crude futures were up 17 cents, or 0.3%, at $52.68 a barrel. They rose 0.4% in the previous session. Prices had jumped as much as 4.5% on Thursday after the attacks on two oil tankers near Iran and the Strait of Hormuz. It was the second time in a month tankers have been attacked in the world's most important zone for oil supplies as tensions increase between the United States and Iran. Washington blamed Iran for Thursday's attacks, prompting a denial and criticism from Tehran. "We don't want war. We've done what we can to deter this," Pompeo said in an interview with Fox News Sunday, adding: "The Iranians should understand very clearly that we will continue to take actions that deter Iran from engaging in this kind of behaviour". Tensions between Iran and the United States have risen since US President Donald Trump pulled out of a deal last year between Iran and global powers that aimed to curb Tehran's nuclear ambitions in exchange for sanctions relief. Iran has repeatedly warned it would block the Strait of Hormuz if it cannot sell its oil because of US sanctions. "Growing tensions in the Middle East remain a cause for concern as traders fear supply disruptions over an escalation towards militaristic conflicts," said Benjamin Lu, an analyst at Phillip Futures in Singapore. Also supporting prices were comments over the weekend by the Saudi energy minister, Khalid al-Falih, that OPEC would probably meet in the first week of July and he hoped it would reach an agreement on extending oil output curbs. "We are hoping that we will reach consensus to extend our agreement when we meet in two weeks time in Vienna," Falih told reporters while attending a G20 energy and environment ministerial meeting in Karuizawa, northwest of Tokyo. The Organization of the Petroleum Exporting Countries plus Russia and other producers, an alliance known as OPEC+, have a deal to cut output by 1.2 million barrels per day (bpd) from January 1. The pact ends this month and the group meets in coming weeks to decide the next move. US energy companies also cut the number of oil rigs operating for a second week in a row, with production growth expected to slow as crude prices fell to near their lowest levels of the year.

Oil prices rise after tanker attacks stoke Middle East tensions

Oil prices tumbled by more than 2 per cent on Monday after US President Donald Trump on Sunday said he would <a href="https://www.wionews.com/world/trump-announces-higher-us-tariffs-on-china-goods-216186">sharply hike tariffs on Chinese goods</a> this week, risking derailing months of trade talks between the world's two biggest economies.

US West Texas Intermediate (WTI) crude futures were at $60.44 per barrel at 0032 GMT on Monday, down $1.50 per barrel, or 2.4 per cent, from their last settlement.

Brent crude oil futures were at $69.34 per barrel, down $1.51 per barrel, or 2.1 per cent, from their last close.

Trump on Sunday said on Twitter he would drastically hike US tariffs on Chinese goods this week, pulling down global financial markets, including crude oil futures.

The Wall Street Journal reported that Beijing is considering cancelling all trade talks with Washington.

"Trump has taken the proverbial sledgehammer to the walnut this morning ... by threatening to slap a 25 per cent tariff on a mind-boggling $525 billion of Chinese goods by this Friday," said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore.

Within the oil industry, there are signs of a further rise in output from the United States, where crude production has already surged by more than 2 million barrels per day (bpd) since early 2018, to a record 12.3 million bpd. That has made the United States the world's biggest producer ahead of Russia and Saudi Arabia.

The number of rigs drilling for gas in the United States fell by 3 to 183 in the week to May 3, while oil-directed drilling rigs rose by 2 to 807, data from oil services firm Baker Hughes showed on Friday.

Oil prices tumbled by more than 2 per cent on Monday after US President Donald Trump on Sunday said he would sharply hike tariffs on Chinese goods this week, risking derailing months of trade talks between the world's two biggest economies.

Oil prices tumbled by more than 2 per cent on Monday after US President Donald Trump on Sunday said he would sharply hike tariffs on Chinese goods this week, risking derailing months of trade talks between the world's two biggest economies. US West Texas Intermediate (WTI) crude futures were at $60.44 per barrel at 0032 GMT on Monday, down $1.50 per barrel, or 2.4 per cent, from their last settlement. Brent crude oil futures were at $69.34 per barrel, down $1.51 per barrel, or 2.1 per cent, from their last close. Trump on Sunday said on Twitter he would drastically hike US tariffs on Chinese goods this week, pulling down global financial markets, including crude oil futures. The Wall Street Journal reported that Beijing is considering cancelling all trade talks with Washington. "Trump has taken the proverbial sledgehammer to the walnut this morning ... by threatening to slap a 25 per cent tariff on a mind-boggling $525 billion of Chinese goods by this Friday," said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore. Within the oil industry, there are signs of a further rise in output from the United States, where crude production has already surged by more than 2 million barrels per day (bpd) since early 2018, to a record 12.3 million bpd. That has made the United States the world's biggest producer ahead of Russia and Saudi Arabia. The number of rigs drilling for gas in the United States fell by 3 to 183 in the week to May 3, while oil-directed drilling rigs rose by 2 to 807, data from oil services firm Baker Hughes showed on Friday.

Oil prices tumble by more than 2% after Trump announces new tariffs on Chinese goods

Oil prices dipped on Tuesday on expectations rising output from the United States and producer club OPEC would offset most of the shortfall expected from US sanctions on Iran, but analysts said markets remained tight.

Brent crude futures were at $71.86 per barrel at 0103 GMT, down 18 cents, or 0.3 per cent, from their last close.

US West Texas Intermediate (WTI) crude futures were at $63.42 per barrel, down 8 cents from their previous settlement.

Oil prices surged by around 40 per cent between January and April, lifted by supply cuts led by the Middle East-dominated producer club of the Organization of the Petroleum Exporting Countries (OPEC) as well as by US&nbsp;sanctions on producers Iran and Venezuela.

But prices came under downward pressure late last week after US&nbsp;President Donald Trump openly pressured OPEC and its de-facto leader Saudi Arabia to raise output to meet the supply shortfall caused by the tightening Iran sanctions.

Stephen Innes, head of trading at SPI Asset Management, said the producer group "will want to avoid at all cost oil prices surging to levels that will trigger demand devastation, (while) it is clearly in OPEC's best interest to maintain a solid floor on prices".

Bank of America Merrill Lynch said, "Iranian oil production will fall to 1.9 million barrels per day in 2H19 from 3.6 million barrels per day in 3Q18 as US sanctions kick in and waivers eventually expire".

Despite this, the bank said it expected "a nearly balanced market in 2019" as output from OPEC and also the United States will rise.

French bank BNP Paribas said it expected oil prices "to rise in the near-term" as crude producers were "over-tightening the market in the face of unplanned supply outages and resilient oil demand".

The bank said it expected crude markets to climb until the third quarter of 2019, adding that prices would then "start to become vulnerable to a sharp rise in US exports of light crude thanks to pipeline and terminal capacity expansion".

US exports exceeded 3 million barrels per day (bpd) for the first time in early 2019 amid a more than 2 million bpd production surge over the past year, to a record of more than 12 million bpd.

BNP Paribas said it saw WTI averaging $63 per barrel in 2019, up $2 from its previous forecast, while Brent will average $71 per barrel, up $3 from an earlier estimate.

"In 2020, we see WTI averaging $64 per barrel and Brent $68 per barrel," the bank said.

Oil prices dipped on Tuesday on expectations rising output from the United States and producer club OPEC would offset most of the shortfall expected from US sanctions on Iran, but analysts said markets remained tight.

Oil prices dipped on Tuesday on expectations rising output from the United States and producer club OPEC would offset most of the shortfall expected from US sanctions on Iran, but analysts said markets remained tight. Brent crude futures were at $71.86 per barrel at 0103 GMT, down 18 cents, or 0.3 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $63.42 per barrel, down 8 cents from their previous settlement. Oil prices surged by around 40 per cent between January and April, lifted by supply cuts led by the Middle East-dominated producer club of the Organization of the Petroleum Exporting Countries (OPEC) as well as by US sanctions on producers Iran and Venezuela. But prices came under downward pressure late last week after US President Donald Trump openly pressured OPEC and its de-facto leader Saudi Arabia to raise output to meet the supply shortfall caused by the tightening Iran sanctions. Stephen Innes, head of trading at SPI Asset Management, said the producer group "will want to avoid at all cost oil prices surging to levels that will trigger demand devastation, (while) it is clearly in OPEC's best interest to maintain a solid floor on prices". Bank of America Merrill Lynch said, "Iranian oil production will fall to 1.9 million barrels per day in 2H19 from 3.6 million barrels per day in 3Q18 as US sanctions kick in and waivers eventually expire". Despite this, the bank said it expected "a nearly balanced market in 2019" as output from OPEC and also the United States will rise. French bank BNP Paribas said it expected oil prices "to rise in the near-term" as crude producers were "over-tightening the market in the face of unplanned supply outages and resilient oil demand". The bank said it expected crude markets to climb until the third quarter of 2019, adding that prices would then "start to become vulnerable to a sharp rise in US exports of light crude thanks to pipeline and terminal capacity expansion". US exports exceeded 3 million barrels per day (bpd) for the first time in early 2019 amid a more than 2 million bpd production surge over the past year, to a record of more than 12 million bpd. BNP Paribas said it saw WTI averaging $63 per barrel in 2019, up $2 from its previous forecast, while Brent will average $71 per barrel, up $3 from an earlier estimate. "In 2020, we see WTI averaging $64 per barrel and Brent $68 per barrel," the bank said.

Oil dips as rising OPEC, US output seen making up for Iran sanctions shortfall

Oil prices fell on Monday, extending a slump from Friday that ended weeks of rallying, after President Donald Trump demanded that producer club OPEC raise output to soften the impact of US sanctions against Iran.

Brent crude futures were at $71.80 per barrel at 0215 GMT, down 35 cents, or 0.5 per cent, from their last close.

US West Texas Intermediate (WTI) crude futures were at $62.91 per barrel, down 39 cents, or 0.6 per cent, from their previous settlement.

Both benchmarks fell around 3 per cent in the previous session.

ANZ bank said on Monday oil prices "took a hit after President Trump indicated he had spoken with Saudi Arabia about reducing the impact of lower Iranian oil exports by increasing flows elsewhere."

Trump said on Friday he called the Organization of the Petroleum Exporting Countries (OPEC) and told the cartel to lower oil prices.

"Gasoline prices are coming down. I called up OPEC, I said you've got to bring them down. You've got to bring them down," Trump told reporters.

The statement triggered a selloff, putting at least a temporary ceiling on a 40 per cent price rally in oil prices since the start of the year.

The rally had gained momentum in April after Trump tightened sanctions against Iran by ending all exemptions that major buyers especially in Asia previously had.

Traders said the market was shifting its focus on the voluntary supply cuts led by the Middle East dominated producer club OPEC since the start of the year.

The cuts have been supported by some non-OPEC producers, most notably Russia, but analysts said this cooperation may not last beyond a meeting between OPEC and its other allies, a group known as OPEC+, scheduled for June.

Russia has said it would be able to meet China's oil demand needs as Beijing tries to replace the imports it usually gets from Iran.

"Russia appears to have every reason to resume ramping up production levels and the base case should start to become we will not see OPEC+ agree upon extending production cuts, with tweaks to cover the shortfall from Iran," said Edward Moya, senior analyst at futures brokerage OANDA.

Meanwhile, Russia hopes to restore oil pipeline supplies to central and western Europe in two weeks, after they were suspended last week over crude quality problems.

Oil prices fell on Monday, extending a slump from Friday that ended weeks of rallying, after President Donald Trump demanded that producer club OPEC raise output to soften the impact of US sanctions against Iran.

Oil prices fell on Monday, extending a slump from Friday that ended weeks of rallying, after President Donald Trump demanded that producer club OPEC raise output to soften the impact of US sanctions against Iran. Brent crude futures were at $71.80 per barrel at 0215 GMT, down 35 cents, or 0.5 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $62.91 per barrel, down 39 cents, or 0.6 per cent, from their previous settlement. Both benchmarks fell around 3 per cent in the previous session. ANZ bank said on Monday oil prices "took a hit after President Trump indicated he had spoken with Saudi Arabia about reducing the impact of lower Iranian oil exports by increasing flows elsewhere." Trump said on Friday he called the Organization of the Petroleum Exporting Countries (OPEC) and told the cartel to lower oil prices. "Gasoline prices are coming down. I called up OPEC, I said you've got to bring them down. You've got to bring them down," Trump told reporters. The statement triggered a selloff, putting at least a temporary ceiling on a 40 per cent price rally in oil prices since the start of the year. The rally had gained momentum in April after Trump tightened sanctions against Iran by ending all exemptions that major buyers especially in Asia previously had. Traders said the market was shifting its focus on the voluntary supply cuts led by the Middle East dominated producer club OPEC since the start of the year. The cuts have been supported by some non-OPEC producers, most notably Russia, but analysts said this cooperation may not last beyond a meeting between OPEC and its other allies, a group known as OPEC+, scheduled for June. Russia has said it would be able to meet China's oil demand needs as Beijing tries to replace the imports it usually gets from Iran. "Russia appears to have every reason to resume ramping up production levels and the base case should start to become we will not see OPEC+ agree upon extending production cuts, with tweaks to cover the shortfall from Iran," said Edward Moya, senior analyst at futures brokerage OANDA. Meanwhile, Russia hopes to restore oil pipeline supplies to central and western Europe in two weeks, after they were suspended last week over crude quality problems.

Oil falls after Trump urges greater OPEC output to replace Iranian oil

Oil prices inched lower on Wednesday on signs that global markets remain adequately supplied despite a jump to 2019 highs this week on Washington's push for tighter sanctions against Iran.

Brent crude futures were at $74.24 per barrel at 0058 GMT, down 27 cents, or 0.4 per cent, from their last close.

US West Texas Intermediate (WTI) crude futures were at $66.02 per barrel, down 28 cents, or 0.4 per cent, from their previous settlement.

Crude futures rose to 2019 highs earlier in the week after the United States said on Monday it would end all exemptions for sanctions against Iran, demanding countries halt oil imports from Tehran from May or face punitive action from Washington.

US sanctions against oil exporter Iran were introduced in November 2018, but Washington allowed its largest buyers limited imports of crude for another half-year as an adjustment period.

With Iranian oil exports likely declining sharply from May as most countries bow to US pressure, global crude markets are expected to tighten in the short-run, Goldman Sachs and Barclays bank said this week.

Despite this, analysts said global oil markets remained adequately supplied thanks to ample spare capacity from the Middle East dominated Organisation of the Petroleum Exporting Countries (OPEC), Russian and also the United States.

The International Energy Agency (IEA), a watchdog for oil-consuming countries, said in a statement on Tuesday that markets are "adequately supplied" and that "global spare production capacity remains at comfortable levels."

The biggest source of new oil supply comes from the United States, where crude oil production has already risen by more than 2 million barrels per day (bpd) since early 2018 to a record of more than 12 million bpd early this year, making America the world's biggest oil producer ahead of Russia and Saudi Arabia.

"Total oil supplies from the United States are expected to grow by 1.6 million bpd this year," the IEA said.

Commercial inventories in the United States are also high.

US crude oil inventories rose by 6.9 million barrels in the week to April 19 to 459.6 million, data from industry group the American Petroleum Institute showed on Tuesday.

Oil prices inched lower on Wednesday on signs that global markets remain adequately supplied despite a jump to 2019 highs this week on Washington's push for tighter sanctions against Iran.

Oil prices inched lower on Wednesday on signs that global markets remain adequately supplied despite a jump to 2019 highs this week on Washington's push for tighter sanctions against Iran. Brent crude futures were at $74.24 per barrel at 0058 GMT, down 27 cents, or 0.4 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $66.02 per barrel, down 28 cents, or 0.4 per cent, from their previous settlement. Crude futures rose to 2019 highs earlier in the week after the United States said on Monday it would end all exemptions for sanctions against Iran, demanding countries halt oil imports from Tehran from May or face punitive action from Washington. US sanctions against oil exporter Iran were introduced in November 2018, but Washington allowed its largest buyers limited imports of crude for another half-year as an adjustment period. With Iranian oil exports likely declining sharply from May as most countries bow to US pressure, global crude markets are expected to tighten in the short-run, Goldman Sachs and Barclays bank said this week. Despite this, analysts said global oil markets remained adequately supplied thanks to ample spare capacity from the Middle East dominated Organisation of the Petroleum Exporting Countries (OPEC), Russian and also the United States. The International Energy Agency (IEA), a watchdog for oil-consuming countries, said in a statement on Tuesday that markets are "adequately supplied" and that "global spare production capacity remains at comfortable levels." The biggest source of new oil supply comes from the United States, where crude oil production has already risen by more than 2 million barrels per day (bpd) since early 2018 to a record of more than 12 million bpd early this year, making America the world's biggest oil producer ahead of Russia and Saudi Arabia. "Total oil supplies from the United States are expected to grow by 1.6 million bpd this year," the IEA said. Commercial inventories in the United States are also high. US crude oil inventories rose by 6.9 million barrels in the week to April 19 to 459.6 million, data from industry group the American Petroleum Institute showed on Tuesday.

Oil dips on well supplied markets despite tighter Iran sanctions

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

Asian shares were little changed on Tuesday, hovering not far from nine-month peaks hit last week, with concerns China may slow the pace of policy easing curbing the market's enthusiasm.

MSCI's broadest index of Asia-Pacific shares outside Japan was almost flat, while Japan's Nikkei average eased 0.2 per cent. Many markets around the world remained shut on Monday after the long Easter weekend.

China stocks fell from a 13-month high on Monday, posting their worst session in nearly four weeks, as comments from top policymaking bodies raised investor fears that Beijing will ease up on stimulative policies after some signs of stabilisation in the world's second-largest economy.

Stocks on Wall Street hovered near break-even on Monday as the benchmark S&amp;P 500 index was about 1 per cent away from its record high hit in September, while the S&amp;P energy index led gains on higher oil prices.

Oil prices jumped more than 2 per cent the previous day to a near six-month high, on growing concern about tight global supplies after the United States announced a further clampdown on Iranian oil exports.&nbsp;

Washington said it would eliminate in May all waivers allowing eight economies to buy Iranian oil without facing US sanctions.

International benchmark Brent crude soared 2.9 per cent to settle at $74.04 a barrel on Monday and US West Texas Intermediate crude jumped 2.7 per cent to settle at $65.70. Both indexes climbed to nearly six-month highs during the session.

US crude futures last traded at $65.78 per barrel, up 0.4 per cent on the day.

But sharp gains in oil prices have so far had a limited impact on the broader financial markets.

"Unless the WTI rises well above $70-75 per barrel, there will be limited impact on US&nbsp;Treasuries and the dollar/yen," said Makoto Noji, chief currency and foreign bond strategist at SMBC Nikko Securities.

In the currency market, the dollar index, which measures the greenback against six major currencies, eased 0.2 per cent overnight and last traded steady at 97.328. The index hit a two-week high of 97.485 on Thursday, before the start of Good Friday and the Easter weekend.

Against the Japanese yen, the dollar was largely flat at 111.96 yen, while the euro was steady to the greenback at 1.2530.

With the jump in the price of oil, one of Canada's major exports, the Canadian dollar rose 0.4 per cent against its US counterpart overnight and last traded at C$1.3352.

On Monday, the Russian rubble hit its highest level against the euro in more than a year, and a one month-peak versus the dollar, also driven by the jump in oil.

Asian shares were little changed on Tuesday, hovering not far from nine-month peaks hit last week, with concerns China may slow the pace of policy easing curbing the market's enthusiasm.

Asian shares were little changed on Tuesday, hovering not far from nine-month peaks hit last week, with concerns China may slow the pace of policy easing curbing the market's enthusiasm. MSCI's broadest index of Asia-Pacific shares outside Japan was almost flat, while Japan's Nikkei average eased 0.2 per cent. Many markets around the world remained shut on Monday after the long Easter weekend. China stocks fell from a 13-month high on Monday, posting their worst session in nearly four weeks, as comments from top policymaking bodies raised investor fears that Beijing will ease up on stimulative policies after some signs of stabilisation in the world's second-largest economy. Stocks on Wall Street hovered near break-even on Monday as the benchmark S&P 500 index was about 1 per cent away from its record high hit in September, while the S&P energy index led gains on higher oil prices. Oil prices jumped more than 2 per cent the previous day to a near six-month high, on growing concern about tight global supplies after the United States announced a further clampdown on Iranian oil exports. Washington said it would eliminate in May all waivers allowing eight economies to buy Iranian oil without facing US sanctions. International benchmark Brent crude soared 2.9 per cent to settle at $74.04 a barrel on Monday and US West Texas Intermediate crude jumped 2.7 per cent to settle at $65.70. Both indexes climbed to nearly six-month highs during the session. US crude futures last traded at $65.78 per barrel, up 0.4 per cent on the day. But sharp gains in oil prices have so far had a limited impact on the broader financial markets. "Unless the WTI rises well above $70-75 per barrel, there will be limited impact on US Treasuries and the dollar/yen," said Makoto Noji, chief currency and foreign bond strategist at SMBC Nikko Securities. In the currency market, the dollar index, which measures the greenback against six major currencies, eased 0.2 per cent overnight and last traded steady at 97.328. The index hit a two-week high of 97.485 on Thursday, before the start of Good Friday and the Easter weekend. Against the Japanese yen, the dollar was largely flat at 111.96 yen, while the euro was steady to the greenback at 1.2530. With the jump in the price of oil, one of Canada's major exports, the Canadian dollar rose 0.4 per cent against its US counterpart overnight and last traded at C$1.3352. On Monday, the Russian rubble hit its highest level against the euro in more than a year, and a one month-peak versus the dollar, also driven by the jump in oil.

Asian shares steady after Easter weekend; oil hits 2019 highs

Oil prices on Friday hovered close to 2019 peaks reached the previous day, propped up by supply cuts led by producer club OPEC and by US sanctions against Iran and Venezuela.

Brent crude oil futures were at $67.82 per barrel at 0122 GMT, down 4 cents from their last close but within a dollar of the $68.69 per barrel 2019-high marked the day before.

US West Texas Intermediate (WTI) futures were at $60 per barrel, virtually unchanged from their last settlement and not far off their 2019 peak of $60.39 touched on Thursday.

Prices have been propped up by supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated allies such as Russia, often referred to as 'OPEC+'.

Despite a more than a quarter increase in crude prices this year, Canadian investment bank RBC Capital Markets said oil was "still below the fiscal breakeven level in a number of OPEC countries", meaning that many producers have an interest in further propping up the market.

"With the driver of the OPEC bus, Saudi Arabia, showing no signs of wavering in the face of renewed pressure from Washington, we believe that OPEC is likely to extend the deal for the duration of 2019 when they next assemble in Vienna in June," RBC said.

RBC said Russia was only a reluctant partner in the supply cuts, but would "ultimately opt to preserve the arrangement and retain a leadership role of a 21-nation group that accounts for around 45 percent of global oil output".

Beyond OPEC and Russia's supply policy, oil prices have also been boosted by US sanctions on OPEC-members Iran and Venezuela.

Iranian crude oil shipments have averaged only just over 1 million bpd in March, down from 1.3 million bpd in February and a 2018 peak of at least 2.5 million bpd in April, before the US sanctions were announced.

Venezuelan crude oil production has also dwindled amid US sanctions and an internal political and economic crisis, plunging from a high of more than 3 million bpd at the start of the century to not much more than 1 million bpd currently.

Putting a break on further price increases has been a US crude oil production jump of more than 2 million bpd since early 2018 to a record 12.1 million bpd, making the United States the world's biggest producer ahead of Russia and Saudi Arabia.

Soaring US output has resulted in increasing exports, which have doubled over the past year to more than 3 million bpd.

The International Energy Agency (IEA) estimated that the United States would become a net crude oil exporter by 2021.

Oil prices on Friday hovered close to 2019 peaks reached the previous day, propped up by supply cuts led by producer club OPEC and by US sanctions against Iran and Venezuela.

Oil prices on Friday hovered close to 2019 peaks reached the previous day, propped up by supply cuts led by producer club OPEC and by US sanctions against Iran and Venezuela. Brent crude oil futures were at $67.82 per barrel at 0122 GMT, down 4 cents from their last close but within a dollar of the $68.69 per barrel 2019-high marked the day before. US West Texas Intermediate (WTI) futures were at $60 per barrel, virtually unchanged from their last settlement and not far off their 2019 peak of $60.39 touched on Thursday. Prices have been propped up by supply cuts by the Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated allies such as Russia, often referred to as 'OPEC+'. Despite a more than a quarter increase in crude prices this year, Canadian investment bank RBC Capital Markets said oil was "still below the fiscal breakeven level in a number of OPEC countries", meaning that many producers have an interest in further propping up the market. "With the driver of the OPEC bus, Saudi Arabia, showing no signs of wavering in the face of renewed pressure from Washington, we believe that OPEC is likely to extend the deal for the duration of 2019 when they next assemble in Vienna in June," RBC said. RBC said Russia was only a reluctant partner in the supply cuts, but would "ultimately opt to preserve the arrangement and retain a leadership role of a 21-nation group that accounts for around 45 percent of global oil output". Beyond OPEC and Russia's supply policy, oil prices have also been boosted by US sanctions on OPEC-members Iran and Venezuela. Iranian crude oil shipments have averaged only just over 1 million bpd in March, down from 1.3 million bpd in February and a 2018 peak of at least 2.5 million bpd in April, before the US sanctions were announced. Venezuelan crude oil production has also dwindled amid US sanctions and an internal political and economic crisis, plunging from a high of more than 3 million bpd at the start of the century to not much more than 1 million bpd currently. Putting a break on further price increases has been a US crude oil production jump of more than 2 million bpd since early 2018 to a record 12.1 million bpd, making the United States the world's biggest producer ahead of Russia and Saudi Arabia. Soaring US output has resulted in increasing exports, which have doubled over the past year to more than 3 million bpd. The International Energy Agency (IEA) estimated that the United States would become a net crude oil exporter by 2021.

Oil prices near 2019 highs amid OPEC supply cuts

Oil prices rose on Monday, lifted by Saudi oil minister Khalid al-Falih saying an end to OPEC-led supply cuts was unlikely before June and a report of falling US drilling activity.

Despite this, markets were somewhat held back after US employment data raised concerns that an economic slowdown in Asia and Europe was spilling into the United States, where growth has so far still been healthy.

US West Texas Intermediate (WTI) crude oil futures were at $56.29 per barrel at 0156 GMT, up 22 cents, or 0.4 per cent from their last close.

Brent crude futures were at $65.91 per barre, up 17 cents, or 0.3 per cent.

Oil markets have been supported this year by ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated allies like Russia - known as the OPEC+ alliance. OPEC+ has pledged to cut 1.2 million barrels per day (bpd) in crude supply since the start of the year to tighten markets and prop up prices.

The group will meet in Vienna on April 17-18, with another gathering scheduled for June 25-26, to discuss supply policy.

Saudi oil minister Khalid al-Falih told Reuters on Sunday it would be too early to change OPEC+ output policy at the group's meeting in April.

"We will see what happens by April, if there is any unforeseen disruption somewhere else, but barring this I think we will just be kicking the can forward," Falih said.

Prices were also supported by US energy services firm Baker Hughes' latest weekly report showing the number of rigs drilling for new oil production in the United States fell by nine to 834.

High drilling activity last year resulted in a more than 2 million bpd rise in production, to a record 12.1 million bpd reached this February.

"This is the third straight week of decline...after a number of oil producers trimmed their spending outlooks for 2019," ANZ bank said on Monday.

The slowdown in drilling points to more timid output growth going forward, but because the overall drilling level remains relatively high despite the recent decline, many analysts still expect U.S. crude output to rise above 13 million bpd soon.

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

Oil prices rose on Monday, lifted by Saudi oil minister Khalid al-Falih saying an end to OPEC-led supply cuts was unlikely before June and a report of falling US drilling activity. Despite this, markets were somewhat held back after US employment data raised concerns that an economic slowdown in Asia and Europe was spilling into the United States, where growth has so far still been healthy. US West Texas Intermediate (WTI) crude oil futures were at $56.29 per barrel at 0156 GMT, up 22 cents, or 0.4 per cent from their last close. Brent crude futures were at $65.91 per barre, up 17 cents, or 0.3 per cent. Oil markets have been supported this year by ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and some non-affiliated allies like Russia - known as the OPEC+ alliance. OPEC+ has pledged to cut 1.2 million barrels per day (bpd) in crude supply since the start of the year to tighten markets and prop up prices. The group will meet in Vienna on April 17-18, with another gathering scheduled for June 25-26, to discuss supply policy. Saudi oil minister Khalid al-Falih told Reuters on Sunday it would be too early to change OPEC+ output policy at the group's meeting in April. "We will see what happens by April, if there is any unforeseen disruption somewhere else, but barring this I think we will just be kicking the can forward," Falih said. Prices were also supported by US energy services firm Baker Hughes' latest weekly report showing the number of rigs drilling for new oil production in the United States fell by nine to 834. High drilling activity last year resulted in a more than 2 million bpd rise in production, to a record 12.1 million bpd reached this February. "This is the third straight week of decline...after a number of oil producers trimmed their spending outlooks for 2019," ANZ bank said on Monday. The slowdown in drilling points to more timid output growth going forward, but because the overall drilling level remains relatively high despite the recent decline, many analysts still expect U.S. crude output to rise above 13 million bpd soon.

Oil rises on OPEC-led supply cuts, but slowing economy restricts gains

Oil prices rose on Monday as Washington and China appeared to edge closer to a trade deal, dampening fears over the outlook for global economic growth.

International Brent crude oil futures were at $67.26 a barrel at 0005 GMT, up 14 cents, or 0.2 per cent, from their last close. They ended Friday little changed after touching their highest since November 16 at $67.73 a barrel.

US West Texas Intermediate (WTI) crude futures were at $57.38 per barrel, up 11 cents, or 0.2 per cent, from their last settlement. WTI futures climbed 0.5 per cent on Friday, having marked their highest since November 16 at $57.81 a barrel.

"Crude prices continue to be supported on optimism a trade deal will be reached in the coming days by the world's two largest economies, said Edward Moya, senior market analyst, OANDA.

President Donald Trump said on Sunday he would delay an increase in US tariffs on Chinese goods scheduled for later this week thanks to progress in trade talks and said if progress continued, he and Chinese President Xi Jinping would seal a deal.

Signs of reduced global oil supply also supported crude prices.

US energy firms this week cut the number of oil rigs operating for the first time in three weeks week after US&nbsp;crude production hit an all-time high, boosting exports to a record-peak and stockpiles to their highest in over a year.

Meanwhile, Mexico's Pemex produced 1.62 million barrels of crude per day in January, less than any month in almost three decades, the state-owned oil company said on Friday, underscoring the challenges facing a government that vows to pump far more in a few years.

Oil prices rose on Monday as Washington and China appeared to edge closer to a trade deal, dampening fears over the outlook for global economic growth. International Brent crude oil futures were at $67.

Oil prices rose on Monday as Washington and China appeared to edge closer to a trade deal, dampening fears over the outlook for global economic growth. International Brent crude oil futures were at $67.26 a barrel at 0005 GMT, up 14 cents, or 0.2 per cent, from their last close. They ended Friday little changed after touching their highest since November 16 at $67.73 a barrel. US West Texas Intermediate (WTI) crude futures were at $57.38 per barrel, up 11 cents, or 0.2 per cent, from their last settlement. WTI futures climbed 0.5 per cent on Friday, having marked their highest since November 16 at $57.81 a barrel. "Crude prices continue to be supported on optimism a trade deal will be reached in the coming days by the world's two largest economies, said Edward Moya, senior market analyst, OANDA. President Donald Trump said on Sunday he would delay an increase in US tariffs on Chinese goods scheduled for later this week thanks to progress in trade talks and said if progress continued, he and Chinese President Xi Jinping would seal a deal. Signs of reduced global oil supply also supported crude prices. US energy firms this week cut the number of oil rigs operating for the first time in three weeks week after US crude production hit an all-time high, boosting exports to a record-peak and stockpiles to their highest in over a year. Meanwhile, Mexico's Pemex produced 1.62 million barrels of crude per day in January, less than any month in almost three decades, the state-owned oil company said on Friday, underscoring the challenges facing a government that vows to pump far more in a few years.

Oil prices firm on hopes for US, China trade deal

Oil prices rose by more than one per cent on Friday as turmoil in Venezuela triggered concerns that its oil exports could soon be disrupted.

Washington on Thursday signalled it could impose sanctions on Venezuela's crude exports as Caracas descends further into political and economic turmoil.

International Brent crude oil futures were at $61.89 a barrel at 0246 GMT, 80 cents, or 1.3 per cent, above their last close.

US West Texas Intermediate (WTI) crude futures were at $53.90 per barrel, up 77 cents, or 1.5 per cent.

Amid violent street protests, Venezuela's opposition leader Juan Guaido declared himself interim president earlier this week, winning backing from Washington and large parts of Latin America, prompting Nicolas Maduro, the country's leader since 2013, to break relations with the United States.

Fundamentally, however, global oil markets are still well supplied, thanks in part to surging output in the United States, where crude production rose by more than 2 million barrels per day (bpd) last year to a record 11.9 million bpd.

Record US production would likely offset any short-term disruptions to Venezuelan supply due to possible US sanctions, Britain's Barclays on Thursday said in a note. The bank cut its 2019 average Brent crude oil forecast to $70 a barrel, down from $72 previously.

The surge in US output has resulted in swelling US fuel inventories.

Gasoline stocks rose for an eighth consecutive week in the week to January 18, by 4.1 million barrels to a record 259.6 million barrels, the US Energy Information Administration (EIA) said in a weekly report on Thursday.

Crude inventories rose by 8 million barrels.

Oil prices rose by more than one per cent on Friday as turmoil in Venezuela triggered concerns that its oil exports could soon be disrupted. Washington on Thursday signalled it could impose sanctions on Venezuela's crude exports as Caracas descends further into political and economic turmoil.

Oil prices rose by more than one per cent on Friday as turmoil in Venezuela triggered concerns that its oil exports could soon be disrupted. Washington on Thursday signalled it could impose sanctions on Venezuela's crude exports as Caracas descends further into political and economic turmoil. International Brent crude oil futures were at $61.89 a barrel at 0246 GMT, 80 cents, or 1.3 per cent, above their last close. US West Texas Intermediate (WTI) crude futures were at $53.90 per barrel, up 77 cents, or 1.5 per cent. Amid violent street protests, Venezuela's opposition leader Juan Guaido declared himself interim president earlier this week, winning backing from Washington and large parts of Latin America, prompting Nicolas Maduro, the country's leader since 2013, to break relations with the United States. Fundamentally, however, global oil markets are still well supplied, thanks in part to surging output in the United States, where crude production rose by more than 2 million barrels per day (bpd) last year to a record 11.9 million bpd. Record US production would likely offset any short-term disruptions to Venezuelan supply due to possible US sanctions, Britain's Barclays on Thursday said in a note. The bank cut its 2019 average Brent crude oil forecast to $70 a barrel, down from $72 previously. The surge in US output has resulted in swelling US fuel inventories. Gasoline stocks rose for an eighth consecutive week in the week to January 18, by 4.1 million barrels to a record 259.6 million barrels, the US Energy Information Administration (EIA) said in a weekly report on Thursday. Crude inventories rose by 8 million barrels.

Oil prices jump as US threatens sanctions against Venezuela

<a href="http://www.wionews.com/business-economy/oil-prices-edge-up-on-supply-cuts-but-weakening-economic-outlook-caps-gains-190325">Oil prices rose</a> by around 1 per cent on Tuesday amid supply cuts led by producer club OPEC and Russia, although a darkening economic outlook may soon weigh on growth in fuel demand.

International Brent crude oil futures were at $59.62 per barrel at 0740 GMT, up 63 cents, or 1.1 per cent, from their last close.

US West Texas Intermediate (WTI) crude futures were at $51.14 per barrel, up 63 cents, or 1.3 per cent.

"OPEC-led cuts and declining US rig counts have bolstered market sentiment in the New Year," Singapore-based brokerage Phillip Futures said on Tuesday.

The Middle East-dominated producer club of the <a href="http://www.wionews.com/business-economy/oil-prices-rise-over-china-us-trade-talks-opec-cuts-188292">Organisation of the Petroleum Exporting Countries (OPEC)</a> and some non-OPEC allies, including Russia, agreed in late 2018 to cut supply to rein in a global glut.

In the United States, the amount of rigs looking for new oil production has dropped from a 2018-peak of 888 to a still high number of 873 in early 2019, pointing to a potential dent in production growth which was at more than 2 million barrels per day (bpd) last year, bringing American crude output to a record 11.7 million bpd.

Meanwhile, the United States last November re-imposed sanctions against Iran's oil exports. Although Washington granted sanctions waivers to Iran's biggest oil customers, mostly in Asia, the Middle Eastern country's exports have plummeted since.

"Iranian exports have already fallen sharply and are likely to remain at around 1.3 million barrels per day (bpd) in 2019, 1.3 million bpd down vs their 1H18 average," HSBC said in its 2019 oil market outlook.

However, Japan expects to restart oil imports from Iran within this month, the Nikkei business daily reported on Tuesday, with some Japanese banks notifying customers they will resume transactions for oil purchases.

South Korea is already expecting to receive Iranian oil imports in January after a four-month interruption.

On the demand side, an economic slowdown is looming over oil and financial markets.

China's National Development and Reform Commission (NDRC) on Tuesday signalled it may roll out more fiscal stimulus measures to stem a further economic slowdown.

Tuesday's oil price increases came after crude futures fell by more than 2 per cent the previous session, dragged down by weak Chinese trade data which pointed to a global economic slowdown.

"The outlook for the global economy continues to be highly uncertain," HSBC said. The bank said it had cut its average 2019 Brent crude oil price forecast by $16 per barrel, to $64 per barrel, citing surging US production and an "increasingly uncertain demand backdrop".

Oil prices rose by around 1 per cent on Tuesday amid supply cuts led by producer club OPEC and Russia, although a darkening economic outlook may soon weigh on growth in fuel demand.

Oil prices rose by around 1 per cent on Tuesday amid supply cuts led by producer club OPEC and Russia, although a darkening economic outlook may soon weigh on growth in fuel demand. International Brent crude oil futures were at $59.62 per barrel at 0740 GMT, up 63 cents, or 1.1 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $51.14 per barrel, up 63 cents, or 1.3 per cent. "OPEC-led cuts and declining US rig counts have bolstered market sentiment in the New Year," Singapore-based brokerage Phillip Futures said on Tuesday. The Middle East-dominated producer club of the Organisation of the Petroleum Exporting Countries (OPEC) and some non-OPEC allies, including Russia, agreed in late 2018 to cut supply to rein in a global glut. In the United States, the amount of rigs looking for new oil production has dropped from a 2018-peak of 888 to a still high number of 873 in early 2019, pointing to a potential dent in production growth which was at more than 2 million barrels per day (bpd) last year, bringing American crude output to a record 11.7 million bpd. Meanwhile, the United States last November re-imposed sanctions against Iran's oil exports. Although Washington granted sanctions waivers to Iran's biggest oil customers, mostly in Asia, the Middle Eastern country's exports have plummeted since. "Iranian exports have already fallen sharply and are likely to remain at around 1.3 million barrels per day (bpd) in 2019, 1.3 million bpd down vs their 1H18 average," HSBC said in its 2019 oil market outlook. However, Japan expects to restart oil imports from Iran within this month, the Nikkei business daily reported on Tuesday, with some Japanese banks notifying customers they will resume transactions for oil purchases. South Korea is already expecting to receive Iranian oil imports in January after a four-month interruption. On the demand side, an economic slowdown is looming over oil and financial markets. China's National Development and Reform Commission (NDRC) on Tuesday signalled it may roll out more fiscal stimulus measures to stem a further economic slowdown. Tuesday's oil price increases came after crude futures fell by more than 2 per cent the previous session, dragged down by weak Chinese trade data which pointed to a global economic slowdown. "The outlook for the global economy continues to be highly uncertain," HSBC said. The bank said it had cut its average 2019 Brent crude oil price forecast by $16 per barrel, to $64 per barrel, citing surging US production and an "increasingly uncertain demand backdrop".

Oil prices rise 1% amid OPEC supply cut

Oil prices were largely steady on Monday after falling 2 per cent in the previous session but remained under pressure amid weaker growth in major economies and concerns about oversupply.

International Brent crude oil futures were at $60.33 per barrel at 0423 GMT, up 5 cents, or 0.08 per cent, from their last close.

US West Texas Intermediate (WTI) crude futures were at $51.33 per barrel, up 13 cents, or 0.25 per cent.

Persistent growth in US shale output continues to weigh on oil prices, while some analysts doubted that planned supply cuts led by the Organization of the Petroleum Exporting Countries would be enough to rebalance markets.

"I don't believe OPEC cuts will work this time around with Qatar going out and Iran refusing to cut, while there's a big question mark when Russia will go to its agreed level," said Sukrit Vijayakar, director of oil consultancy Trifecta.

"Meanwhile, US production will go on increasing. So the whole load will effectively be on Saudi Arabia, who is under severe pressure from Trump anyway."

OPEC and its Russia-led allies have agreed to curb output from January, in a move to be reviewed at a meeting in April. Saudi Arabia is OPEC's de facto leader.

Meanwhile, increasing concerns about weakening growth in major markets such as China and Europe also dampened the mood in oil and other asset classes.

Chinese oil refinery throughput in November fell from October, suggesting an easing in oil demand, while the country's industrial output rose the least in nearly three years as the economy continued to lose momentum.

French business activity plunged unexpectedly into contraction this month, retreating at the fastest pace in over four years, while Germany's private sector expansion slowed to a four-year low in December.

But oil prices were supported after General Electric Co's Baker Hughes energy services firm said on Friday that US drillers cut four oil rigs in the week to December 14, pulling the total count to the lowest since mid-October at 873.

However, the current US rig count, which serves as an early indicator of future output, is higher than a year ago when 747 rigs were active.

"The potential for a significant movement in the US dollar clearly has an impact on oil pricing with the Fed meeting (this week)," said Michael McCarthy, chief markets strategist at CMC Markets.

"We're looking outside the oil markets for its next major move."

The US Federal Open Market Committee (FOMC) is set to start a two-day meeting on Tuesday.

Oil prices were largely steady on Monday after falling 2 per cent in the previous session but remained under pressure amid weaker growth in major economies and concerns about oversupply.

Oil prices were largely steady on Monday after falling 2 per cent in the previous session but remained under pressure amid weaker growth in major economies and concerns about oversupply. International Brent crude oil futures were at $60.33 per barrel at 0423 GMT, up 5 cents, or 0.08 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $51.33 per barrel, up 13 cents, or 0.25 per cent. Persistent growth in US shale output continues to weigh on oil prices, while some analysts doubted that planned supply cuts led by the Organization of the Petroleum Exporting Countries would be enough to rebalance markets. "I don't believe OPEC cuts will work this time around with Qatar going out and Iran refusing to cut, while there's a big question mark when Russia will go to its agreed level," said Sukrit Vijayakar, director of oil consultancy Trifecta. "Meanwhile, US production will go on increasing. So the whole load will effectively be on Saudi Arabia, who is under severe pressure from Trump anyway." OPEC and its Russia-led allies have agreed to curb output from January, in a move to be reviewed at a meeting in April. Saudi Arabia is OPEC's de facto leader. Meanwhile, increasing concerns about weakening growth in major markets such as China and Europe also dampened the mood in oil and other asset classes. Chinese oil refinery throughput in November fell from October, suggesting an easing in oil demand, while the country's industrial output rose the least in nearly three years as the economy continued to lose momentum. French business activity plunged unexpectedly into contraction this month, retreating at the fastest pace in over four years, while Germany's private sector expansion slowed to a four-year low in December. But oil prices were supported after General Electric Co's Baker Hughes energy services firm said on Friday that US drillers cut four oil rigs in the week to December 14, pulling the total count to the lowest since mid-October at 873. However, the current US rig count, which serves as an early indicator of future output, is higher than a year ago when 747 rigs were active. "The potential for a significant movement in the US dollar clearly has an impact on oil pricing with the Fed meeting (this week)," said Michael McCarthy, chief markets strategist at CMC Markets. "We're looking outside the oil markets for its next major move." The US Federal Open Market Committee (FOMC) is set to start a two-day meeting on Tuesday.

Oil prices pressured by oversupply, global economic concerns

US oil prices edged up on Thursday, buoyed by a drawdown in inventories and by signs of easing trade tensions between Washington and Beijing.

Oil prices have also been supported by OPEC-led supply curbs announced last week, although gains have been muted after the producer group lowered its 2019 demand forecast.

US West Texas Intermediate (WTI) crude futures were at $51.27 per barrel at 0020 GMT, up 0.23 per cent from their last settlement.

International Brent crude oil futures had yet to trade.

"Crude oil prices rose, helped by the easing trade tension, as well as a fall in inventories," ANZ bank said on Thursday.

"The news that China is looking to redraft its 'Made in China' 2025 plan boosted hopes that trade talks are progressing better than expected."

China appears to be easing its high-tech industrial development push, dubbed 'Made in China 2025', which has long irked the United States, amid talks between the two countries to reduce trade tensions, according to new guidance to local governments.

A drop in US crude stockpiles, though less than expected, has helped boost sentiment, analysts said.

US crude inventories fell by 1.2 million barrels in the week to December 7, compared with market expectations for a decrease of 3 million barrels.&nbsp;

Meanwhile, the Organisation of the Petroleum Exporting Countries (OPEC) said 2019 demand for its crude would fall to 31.44 million barrels per day, 100,000 bpd less than predicted last month and 1.53 million less than it currently produces.

This adds to the concerns of several market watchers that the decision led by the group to cut production by 1.2 million bpd overall might not be enough to override a glut, especially on the back of soaring US output.

"Oil markets have been concerned about the possibility of weaker macroeconomic and oil demand growth; when combined with booming US shale output, this could keep markets oversupplied in 2019, even with the OPEC+ cut," Societe Generale analyst Michael Wittner said in a note.

"At this point, the OPEC+ cuts appear to have merely put a floor under prices."

The United States, where crude production has hit a record 11.7 million bpd, is set to end 2018 as the world's top oil producer, ahead of Russia and Saudi Arabia.

US oil prices edged up on Thursday, buoyed by a drawdown in inventories and by signs of easing trade tensions between Washington and Beijing. Oil prices have also been supported by OPEC-led supply curbs announced last week, although gains have been muted after the producer group lowered its 2019 demand forecast.

US oil prices edged up on Thursday, buoyed by a drawdown in inventories and by signs of easing trade tensions between Washington and Beijing. Oil prices have also been supported by OPEC-led supply curbs announced last week, although gains have been muted after the producer group lowered its 2019 demand forecast. US West Texas Intermediate (WTI) crude futures were at $51.27 per barrel at 0020 GMT, up 0.23 per cent from their last settlement. International Brent crude oil futures had yet to trade. "Crude oil prices rose, helped by the easing trade tension, as well as a fall in inventories," ANZ bank said on Thursday. "The news that China is looking to redraft its 'Made in China' 2025 plan boosted hopes that trade talks are progressing better than expected." China appears to be easing its high-tech industrial development push, dubbed 'Made in China 2025', which has long irked the United States, amid talks between the two countries to reduce trade tensions, according to new guidance to local governments. A drop in US crude stockpiles, though less than expected, has helped boost sentiment, analysts said. US crude inventories fell by 1.2 million barrels in the week to December 7, compared with market expectations for a decrease of 3 million barrels. Meanwhile, the Organisation of the Petroleum Exporting Countries (OPEC) said 2019 demand for its crude would fall to 31.44 million barrels per day, 100,000 bpd less than predicted last month and 1.53 million less than it currently produces. This adds to the concerns of several market watchers that the decision led by the group to cut production by 1.2 million bpd overall might not be enough to override a glut, especially on the back of soaring US output. "Oil markets have been concerned about the possibility of weaker macroeconomic and oil demand growth; when combined with booming US shale output, this could keep markets oversupplied in 2019, even with the OPEC+ cut," Societe Generale analyst Michael Wittner said in a note. "At this point, the OPEC+ cuts appear to have merely put a floor under prices." The United States, where crude production has hit a record 11.7 million bpd, is set to end 2018 as the world's top oil producer, ahead of Russia and Saudi Arabia.

US oil prices inch up amid stockpile drop, signs of easing trade tensions

<a href="http://www.wionews.com/business-economy/oil-extends-gains-after-opec-led-group-seals-deal-to-cut-supply-182778">Oil prices</a> remained on shaky ground on Tuesday after sliding by 3 per cent the previous day, pressured by weakness in global stock markets and doubts that planned supply cuts led by producer club OPEC will be enough to rein in oversupply.

US West Texas Intermediate (WTI) crude futures were at $51 per barrel at 0028 GMT, unchanged from their last close.

International Brent crude oil futures had yet to trade.

Crude prices dropped by 3 per cent the session before amid ongoing weakness in global stock markets and concerns that slowing oil demand-growth could erode supply cuts announced last week by the Organisation of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including Russia.

Crude prices are down around a third since early October amid the financial market slump and an emerging oil supply overhang.

"There remains a lot of uncertainty if the production cut is thick enough to make a significant dent in global supply," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

"The general risk-off tone in global markets and the stronger dollar ... are contributing to the selling pressure."

The OPEC-led group of oil producers last Friday announced a supply cut of 1.2 million barrels per day (bpd) in crude oil supply from January, measured against October 2018 output levels.

Oil prices remained on shaky ground on Tuesday after sliding by 3 per cent the previous day, pressured by weakness in global stock markets and doubts that planned supply cuts led by producer club OPEC will be enough to rein in oversupply.

Oil prices remained on shaky ground on Tuesday after sliding by 3 per cent the previous day, pressured by weakness in global stock markets and doubts that planned supply cuts led by producer club OPEC will be enough to rein in oversupply. US West Texas Intermediate (WTI) crude futures were at $51 per barrel at 0028 GMT, unchanged from their last close. International Brent crude oil futures had yet to trade. Crude prices dropped by 3 per cent the session before amid ongoing weakness in global stock markets and concerns that slowing oil demand-growth could erode supply cuts announced last week by the Organisation of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including Russia. Crude prices are down around a third since early October amid the financial market slump and an emerging oil supply overhang. "There remains a lot of uncertainty if the production cut is thick enough to make a significant dent in global supply," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore. "The general risk-off tone in global markets and the stronger dollar ... are contributing to the selling pressure." The OPEC-led group of oil producers last Friday announced a supply cut of 1.2 million barrels per day (bpd) in crude oil supply from January, measured against October 2018 output levels.

Oil prices on shaky ground amid global financial market worries

Oil fell on Wednesday as a swelling supply glut and signs of an economic slowdown weighed on crude prices a day ahead of an OPEC meeting at which the producer club is expected to decide supply cuts.

International Brent crude oil futures were at $61.16 per barrel at 0757 GMT, down 92 cents, or 1.5 per cent, from their last close.

US West Texas Intermediate (WTI) crude futures were at $52.40 per barrel, down 85 cents, or 1.6 per cent.

Oil prices were pressured by a weekly report from the American Petroleum Institute (API) that said US crude inventories rose by 5.4 million barrels in the week to November 30, to 448 million barrels, in a sign that US oil markets are in a growing glut.

Official US government oil production and inventory data are due later on Wednesday.

In the Middle East, Saudi Arabia produced a record 11.3 million barrels per day (bpd) in November, adding to the swelling glut.

The supply overhang will be the focus of a meeting of the Organisation of the Petroleum Exporting Countries (OPEC) on Thursday, at which the producer group is expected to decide some form of supply cut aimed at supporting crude prices.

In the latest sign of a clogged market, Asian gasoline refining margins have plunged to their weakest levels in seven years - so low that churning out this key motor fuel has become a loss-making business.

GLOOMY MARKETS

The slide in US oil followed a tumble in global stock markets on Tuesday and Wednesday, with investors worried about the threat of a widespread economic slowdown.

Key to the global economic outlook will be whether the United States and China can resolve their trade disputes. Washington and Beijing announced a 90-day truce last weekend, during which neither side will further increase punitive import tariffs.

In a sign of easing tensions between the world's two biggest economies, Chinese oil trader Unipec plans to resume US crude shipments to China by March after the Xi-Trump deal at the G20 meeting reduced the risk of tariffs being imposed on these imports, people with knowledge of the matter said.

Yet the truce may not last. US President Donald Trump threatened on Tuesday to place "major tariffs" on Chinese goods imported into the United States if his administration didn't reach a desirable deal with Beijing.

China's state council on Wednesday issued guidance to support employment as the economy slows, saying the country should pay "high attention" to the impact on employment from increasing economic headwinds.

Bank of America Merrill Lynch said in its 2019 economic outlook, published on Tuesday, that "most major economies are likely to see decelerating activity", although it added that "a steady stream of monetary and fiscal stimulus measures" was expected to stem the slowdown.

In Asian powerhouse Japan, the economy is expected to have contracted more again in the third quarter, with the slowdown deepening, a poll showed on Wednesday, with Q3 annualised GDP expected to fall by 1.9 per cent.

A slowing economy may further undermine oil prices.

Bank of America said it expected Brent and WTI prices to average $70 and $59 per barrel respectively in 2019.

Brent and WTI have averaged $72.80 and $66.10 per barrel so far this year.

Oil fell on Wednesday as a swelling supply glut and signs of an economic slowdown weighed on crude prices a day ahead of an OPEC meeting at which the producer club is expected to decide supply cuts.

Oil fell on Wednesday as a swelling supply glut and signs of an economic slowdown weighed on crude prices a day ahead of an OPEC meeting at which the producer club is expected to decide supply cuts. International Brent crude oil futures were at $61.16 per barrel at 0757 GMT, down 92 cents, or 1.5 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were at $52.40 per barrel, down 85 cents, or 1.6 per cent. Oil prices were pressured by a weekly report from the American Petroleum Institute (API) that said US crude inventories rose by 5.4 million barrels in the week to November 30, to 448 million barrels, in a sign that US oil markets are in a growing glut. Official US government oil production and inventory data are due later on Wednesday. In the Middle East, Saudi Arabia produced a record 11.3 million barrels per day (bpd) in November, adding to the swelling glut. The supply overhang will be the focus of a meeting of the Organisation of the Petroleum Exporting Countries (OPEC) on Thursday, at which the producer group is expected to decide some form of supply cut aimed at supporting crude prices. In the latest sign of a clogged market, Asian gasoline refining margins have plunged to their weakest levels in seven years - so low that churning out this key motor fuel has become a loss-making business. GLOOMY MARKETS The slide in US oil followed a tumble in global stock markets on Tuesday and Wednesday, with investors worried about the threat of a widespread economic slowdown. Key to the global economic outlook will be whether the United States and China can resolve their trade disputes. Washington and Beijing announced a 90-day truce last weekend, during which neither side will further increase punitive import tariffs. In a sign of easing tensions between the world's two biggest economies, Chinese oil trader Unipec plans to resume US crude shipments to China by March after the Xi-Trump deal at the G20 meeting reduced the risk of tariffs being imposed on these imports, people with knowledge of the matter said. Yet the truce may not last. US President Donald Trump threatened on Tuesday to place "major tariffs" on Chinese goods imported into the United States if his administration didn't reach a desirable deal with Beijing. China's state council on Wednesday issued guidance to support employment as the economy slows, saying the country should pay "high attention" to the impact on employment from increasing economic headwinds. Bank of America Merrill Lynch said in its 2019 economic outlook, published on Tuesday, that "most major economies are likely to see decelerating activity", although it added that "a steady stream of monetary and fiscal stimulus measures" was expected to stem the slowdown. In Asian powerhouse Japan, the economy is expected to have contracted more again in the third quarter, with the slowdown deepening, a poll showed on Wednesday, with Q3 annualised GDP expected to fall by 1.9 per cent. A slowing economy may further undermine oil prices. Bank of America said it expected Brent and WTI prices to average $70 and $59 per barrel respectively in 2019. Brent and WTI have averaged $72.80 and $66.10 per barrel so far this year.

Oil prices fall on swelling glut, economic growth concerns

Oil prices on Monday clawed back some losses from a nearly 8-per cent plunge the previous session, but Brent failed to hold above $60 per barrel amid generally weak financial markets.

Front-month Brent crude oil futures had risen by 96 cents, or 1.6 per cent, to $59.76 per barrel by 0745 GMT.

US West Texas Intermediate (WTI) crude futures were up 62 cents, or 1.2 per cent, at $51.04 per barrel.

The gains partly made up for Friday's selloff, which traders have already dubbed 'Black Friday'.

Reacting to Friday's falls in Brent and WTI, China's Shanghai crude futures on Monday fell by 5 per cent, hitting their daily downside-limit.

Judging by exchange data, traders are preparing for more price falls.

Managed short positions in front-month WTI crude futures, which would profit from further price declines, have surged from record lows in July to the highest number of short positions since October 2017.

What's more, the number of puts - which give a trader the option though not obligation to sell a financial instrument at a certain price - in February Brent crude oil futures at $55 and $50 per barrel has surged to record levels since October.

The downward pressure comes from surging supply and a slowdown in demand growth which is expected to result in an oil supply overhang by next year.

"2019 will be a choppy year for the oil market as questions surrounding the prospect of a slowing global economy and a supply surplus are expected to increase," analysts at Fitch Solutions said on Monday.

Fitch said that even an expected supply cut led by the Organization of the Petroleum Exporting Countries (OPEC) following an official meeting on December 6 "may not be enough to counteract the bearish forces".

WIDER DOWNTURN

Oil markets are also being affected by a downturn in wider financial markets.

"2018 clearly marked the end of the 10-year Asia credit bull market due to tightening financial conditions in Asia (especially China), and we expect this to remain the case in 2019," Morgan Stanley said in a note released on Sunday.

"We don't think that we are at the bottom of the cycle yet," the US bank said.

Oil markets have also been weighed down by a strong US-dollar, which has surged against most other currencies this year, thanks to rising interest rates that have pulled investor money out of other currencies and also assets like oil, which are seen as more risky than the greenback.

"Anything denominated against the USD is under pressure right now, said McKenna.

Another risk to global trade and overall economic growth is the trade war between the world's two biggest economies, the United States and China.

"The US-China trade conflict poses a downside risk as we forecast the US to impose 25 percent tariffs on all China imports by Q1 2019," US bank JP Morgan said in a note published on Friday. 
&nbsp;

Oil prices on Monday clawed back some losses from a nearly 8-per cent plunge the previous session, but Brent failed to hold above $60 per barrel amid generally weak financial markets.

Oil prices on Monday clawed back some losses from a nearly 8-per cent plunge the previous session, but Brent failed to hold above $60 per barrel amid generally weak financial markets. Front-month Brent crude oil futures had risen by 96 cents, or 1.6 per cent, to $59.76 per barrel by 0745 GMT. US West Texas Intermediate (WTI) crude futures were up 62 cents, or 1.2 per cent, at $51.04 per barrel. The gains partly made up for Friday's selloff, which traders have already dubbed 'Black Friday'. Reacting to Friday's falls in Brent and WTI, China's Shanghai crude futures on Monday fell by 5 per cent, hitting their daily downside-limit. Judging by exchange data, traders are preparing for more price falls. Managed short positions in front-month WTI crude futures, which would profit from further price declines, have surged from record lows in July to the highest number of short positions since October 2017. What's more, the number of puts - which give a trader the option though not obligation to sell a financial instrument at a certain price - in February Brent crude oil futures at $55 and $50 per barrel has surged to record levels since October. The downward pressure comes from surging supply and a slowdown in demand growth which is expected to result in an oil supply overhang by next year. "2019 will be a choppy year for the oil market as questions surrounding the prospect of a slowing global economy and a supply surplus are expected to increase," analysts at Fitch Solutions said on Monday. Fitch said that even an expected supply cut led by the Organization of the Petroleum Exporting Countries (OPEC) following an official meeting on December 6 "may not be enough to counteract the bearish forces". WIDER DOWNTURN Oil markets are also being affected by a downturn in wider financial markets. "2018 clearly marked the end of the 10-year Asia credit bull market due to tightening financial conditions in Asia (especially China), and we expect this to remain the case in 2019," Morgan Stanley said in a note released on Sunday. "We don't think that we are at the bottom of the cycle yet," the US bank said. Oil markets have also been weighed down by a strong US-dollar, which has surged against most other currencies this year, thanks to rising interest rates that have pulled investor money out of other currencies and also assets like oil, which are seen as more risky than the greenback. "Anything denominated against the USD is under pressure right now, said McKenna. Another risk to global trade and overall economic growth is the trade war between the world's two biggest economies, the United States and China. "The US-China trade conflict poses a downside risk as we forecast the US to impose 25 percent tariffs on all China imports by Q1 2019," US bank JP Morgan said in a note published on Friday.

Oil prices claw back some losses after 'Black Friday' plunge

Oil prices rose on Friday amid expectations of supply cuts from OPEC, although record US production dragged.

US West Texas Intermediate (WTI) crude oil futures were at $56.84 per barrel at 0353 GMT, up 38 cents, or 0.7 per cent, from their last settlement.

Brent crude oil futures were up 48 cents, or 0.7 per cent, at $67.10 per barrel.

Prices were mainly supported by expectations the Organization of the Petroleum Exporting Countries (OPEC) would start withholding supply soon, fearing a renewed rout such as in 2014 when prices crashed under the weight of oversupply.

OPEC's de-facto leader Saudi Arabia wants the cartel and its allies to cut output by about 1.4 million barrels per day (bpd), around 1.5 per cent of global supply, sources told Reuters this week.

However, Morgan Stanley warned a cut by the Middle East dominated producer cartel may not have the desired effect.

"The main oil price benchmarks - Brent and WTI - are both light-sweet crudes and reflect this glut," the US bank said.

"OPEC production cuts are usually implemented by removing medium and heavier barrels from the market but that does not address the oversupply of light-sweet."

Due to the structural oversupply that has emerged in the market from record production by many countries, Morgan Stanley said that "OPEC cuts are inherently temporary (because) all they can do is shift production from one period to another".

While OPEC considers withholding supply, US crude oil production reached another record last week, at 11.7 million bpd, according to US Energy Information Administration (EIA) data published on Thursday.

US output has surged by almost a quarter since the start of the year.

The record output meant US crude oil stocks posted the biggest weekly build in nearly two years.

Crude inventories soared 10.3 million barrels in the week to November 9 to 442.1 million barrels, the highest level since early December 2017.

This surge contributed to oil prices falling by around a quarter since early October, taking many by surprise.

"Oil bulls, us included, have capitulated and we no longer see oil climbing to $95 per barrel next year," Bank of America Merrill Lynch said in a note.

While sentiment has turned bearish, some analysts warn that 2019 could be tighter than expected.

"We expect 2019 oil demand to reach 101.1 million bpd," natural resources research and investment firm Goehring &amp; Rozencwajg said, up from just under 100 million bpd this year.

At the same time, the firm said production outside North America was set to disappoint.

Add OPEC's expected supply cuts, and Goehring &amp; Rozencwajg said "those investors who are able to adopt a contrarian stance ... and stomach the volatility ... are being presented with an excellent investment opportunity" to buy into oil after the recent slump.

Bank of America agreed, saying "we believe oil is oversold and will likely bounce up from the current levels, as OPEC+ dials back production in December".

Oil prices rose on Friday amid expectations of supply cuts from OPEC, although record US production dragged. US West Texas Intermediate (WTI) crude oil futures were at $56.

Oil prices rose on Friday amid expectations of supply cuts from OPEC, although record US production dragged. US West Texas Intermediate (WTI) crude oil futures were at $56.84 per barrel at 0353 GMT, up 38 cents, or 0.7 per cent, from their last settlement. Brent crude oil futures were up 48 cents, or 0.7 per cent, at $67.10 per barrel. Prices were mainly supported by expectations the Organization of the Petroleum Exporting Countries (OPEC) would start withholding supply soon, fearing a renewed rout such as in 2014 when prices crashed under the weight of oversupply. OPEC's de-facto leader Saudi Arabia wants the cartel and its allies to cut output by about 1.4 million barrels per day (bpd), around 1.5 per cent of global supply, sources told Reuters this week. However, Morgan Stanley warned a cut by the Middle East dominated producer cartel may not have the desired effect. "The main oil price benchmarks - Brent and WTI - are both light-sweet crudes and reflect this glut," the US bank said. "OPEC production cuts are usually implemented by removing medium and heavier barrels from the market but that does not address the oversupply of light-sweet." Due to the structural oversupply that has emerged in the market from record production by many countries, Morgan Stanley said that "OPEC cuts are inherently temporary (because) all they can do is shift production from one period to another". While OPEC considers withholding supply, US crude oil production reached another record last week, at 11.7 million bpd, according to US Energy Information Administration (EIA) data published on Thursday. US output has surged by almost a quarter since the start of the year. The record output meant US crude oil stocks posted the biggest weekly build in nearly two years. Crude inventories soared 10.3 million barrels in the week to November 9 to 442.1 million barrels, the highest level since early December 2017. This surge contributed to oil prices falling by around a quarter since early October, taking many by surprise. "Oil bulls, us included, have capitulated and we no longer see oil climbing to $95 per barrel next year," Bank of America Merrill Lynch said in a note. While sentiment has turned bearish, some analysts warn that 2019 could be tighter than expected. "We expect 2019 oil demand to reach 101.1 million bpd," natural resources research and investment firm Goehring & Rozencwajg said, up from just under 100 million bpd this year. At the same time, the firm said production outside North America was set to disappoint. Add OPEC's expected supply cuts, and Goehring & Rozencwajg said "those investors who are able to adopt a contrarian stance ... and stomach the volatility ... are being presented with an excellent investment opportunity" to buy into oil after the recent slump. Bank of America agreed, saying "we believe oil is oversold and will likely bounce up from the current levels, as OPEC+ dials back production in December".

Oil rises on expected OPEC cuts, but surging US supply drags

Oil markets remained on a weak footing on Wednesday after a <a href="http://www.wionews.com/business-economy/wall-street-stocks-dow-nasdaq-tumble-oil-prices-continue-to-slide-176958">7 per cent slump the previous session</a>, with surging supply and expectations of faltering demand pressuring crude prices.

US West Texas Intermediate (WTI) crude oil futures were at $55.66 per barrel at 0043 GMT, down 3 cents from their last settlement.

International benchmark Brent crude oil futures had yet to trade.

Markets fell by more than 7 per cent the previous day. They have lost over a quarter of their value since early October in what has become one of the biggest declines since prices collapsed in 2014.

Oil markets are being pressured from two sides: a surge in supply and increasing concerns about an economic slowdown.

The wave of supply is mostly fuelled by soaring production in the United States.

US crude oil output from its seven major shale basins is expected to hit a record of 7.94 million barrels per day (bpd) in December, the US Department of Energy's Energy Information Administration (EIA) said on Tuesday.

That surge in onshore output has helped overall US crude production hit a record 11.6 million bpd, making the United States the world's biggest oil producer ahead of Russia and Saudi Arabia.

Most analysts expect US output to climb above 12 million bpd within the first half of 2019.

"This will, in our view, cap any upside above $85 per barrel (for oil prices)," said Jon Andersson, head of commodities at Vontobel Asset Management.

The surge in US production is contributing to rising stockpiles.

US crude stocks rose by 7.8 million barrels in the week ending November 2 to 432 million, as refineries cut output, data from industry group the American Petroleum Institute showed on Tuesday.

The producer cartel of the Organisation of the Petroleum Exporting Countries (OPEC), whose member states rely on high oil prices to finance government budgets, has been watching the jump in supply and price slump with concern.

Led by top exporter Saudi Arabia, OPEC has been making increasingly frequent public statements that it would start withholding crude in 2019 to tighten supply and prop up prices.

"OPEC and Russia are under pressure to reduce current production levels, which is a decision that we expect to be taken at the next OPEC meeting on December 6," said Andersson.

That puts OPEC and Saudi Arabia on a collision course with US President Donald Trump, who publicly supports low oil prices and who has called on OPEC not to cut production.

Oil markets remained on a weak footing on Wednesday after a 7 per cent slump the previous session, with surging supply and expectations of faltering demand pressuring crude prices.

Oil markets remained on a weak footing on Wednesday after a 7 per cent slump the previous session, with surging supply and expectations of faltering demand pressuring crude prices. US West Texas Intermediate (WTI) crude oil futures were at $55.66 per barrel at 0043 GMT, down 3 cents from their last settlement. International benchmark Brent crude oil futures had yet to trade. Markets fell by more than 7 per cent the previous day. They have lost over a quarter of their value since early October in what has become one of the biggest declines since prices collapsed in 2014. Oil markets are being pressured from two sides: a surge in supply and increasing concerns about an economic slowdown. The wave of supply is mostly fuelled by soaring production in the United States. US crude oil output from its seven major shale basins is expected to hit a record of 7.94 million barrels per day (bpd) in December, the US Department of Energy's Energy Information Administration (EIA) said on Tuesday. That surge in onshore output has helped overall US crude production hit a record 11.6 million bpd, making the United States the world's biggest oil producer ahead of Russia and Saudi Arabia. Most analysts expect US output to climb above 12 million bpd within the first half of 2019. "This will, in our view, cap any upside above $85 per barrel (for oil prices)," said Jon Andersson, head of commodities at Vontobel Asset Management. The surge in US production is contributing to rising stockpiles. US crude stocks rose by 7.8 million barrels in the week ending November 2 to 432 million, as refineries cut output, data from industry group the American Petroleum Institute showed on Tuesday. The producer cartel of the Organisation of the Petroleum Exporting Countries (OPEC), whose member states rely on high oil prices to finance government budgets, has been watching the jump in supply and price slump with concern. Led by top exporter Saudi Arabia, OPEC has been making increasingly frequent public statements that it would start withholding crude in 2019 to tighten supply and prop up prices. "OPEC and Russia are under pressure to reduce current production levels, which is a decision that we expect to be taken at the next OPEC meeting on December 6," said Andersson. That puts OPEC and Saudi Arabia on a collision course with US President Donald Trump, who publicly supports low oil prices and who has called on OPEC not to cut production.

Oil markets struggle to find footing after seven per cent slump

Oil prices steadied on Friday after a market rout driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a fall or more than 4 per cent for the week.

Brent crude futures edged up 13 cents to $80.39 a barrel by 0042 GMT. The contract fell 3.4 per cent on Thursday, after hitting a low of $79.80, its weakest since September 24.

US West Texas Intermediate (WTI) crude futures were up 11 cents at $71.08 a barrel, after falling 3 per cent in the previous session to the lowest since Sept. 21.

Wall Street extended its slide into a sixth session and a global equity index fell to a 1-year low on Thursday as investors feared an escalating US trade war with China and risks from a recent climb in interest rates.

Japan's Nikkei was slightly lower in early trading on Friday.

On the oil front, US crude inventories rose by 6 million barrels last week, the Energy Information Administration said, more than double analysts' expectations of a 2.6 million-barrel increase.

The Organization of the Petroleum Exporting Countries cut its forecast of global demand growth for oil next year for a third straight month, citing headwinds facing the broader economy from trade disputes and volatile emerging markets.

OPEC sees the oil market as well supplied and is wary of creating a glut next year, the group's secretary-general said on Thursday.

In the US Gulf of Mexico, producers had cut output by 40 per cent on Thursday due to Hurricane Michael, according to the Bureau of Safety and Environmental Enforcement, even as some operators began returning crews to offshore platforms.

The cuts represent 680,107 barrels per day of oil production, the bureau said, citing reports from 30 companies.

Michael crashed ashore Florida on Wednesday as the third most powerful hurricane to strike the US mainland, leaving seven people least. It has since weakened to a tropical storm.

Oil prices steadied on Friday after a market rout driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a fall or more than 4 per cent for the week.

Oil prices steadied on Friday after a market rout driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a fall or more than 4 per cent for the week. Brent crude futures edged up 13 cents to $80.39 a barrel by 0042 GMT. The contract fell 3.4 per cent on Thursday, after hitting a low of $79.80, its weakest since September 24. US West Texas Intermediate (WTI) crude futures were up 11 cents at $71.08 a barrel, after falling 3 per cent in the previous session to the lowest since Sept. 21. Wall Street extended its slide into a sixth session and a global equity index fell to a 1-year low on Thursday as investors feared an escalating US trade war with China and risks from a recent climb in interest rates. Japan's Nikkei was slightly lower in early trading on Friday. On the oil front, US crude inventories rose by 6 million barrels last week, the Energy Information Administration said, more than double analysts' expectations of a 2.6 million-barrel increase. The Organization of the Petroleum Exporting Countries cut its forecast of global demand growth for oil next year for a third straight month, citing headwinds facing the broader economy from trade disputes and volatile emerging markets. OPEC sees the oil market as well supplied and is wary of creating a glut next year, the group's secretary-general said on Thursday. In the US Gulf of Mexico, producers had cut output by 40 per cent on Thursday due to Hurricane Michael, according to the Bureau of Safety and Environmental Enforcement, even as some operators began returning crews to offshore platforms. The cuts represent 680,107 barrels per day of oil production, the bureau said, citing reports from 30 companies. Michael crashed ashore Florida on Wednesday as the third most powerful hurricane to strike the US mainland, leaving seven people least. It has since weakened to a tropical storm.

Oil prices hold ground, but set for 4 per cent weekly fall

Oil prices rose on Thursday, lifted by looming US sanctions against major crude exporter Iran.

Brent crude futures &lt;LCOc1&gt; were at $82.04 per barrel at 0104 GMT, up by 70 cents, or 0.9 per cent from their last close.

US West Texas Intermediate (WTI) crude futures &lt;CLc1&gt; were at $72.35 a barrel, up 78 cents, or 1.1 per cent from their last settlement.

Traders said oil markets were tightening ahead of Washington's planned sanctions on Iran's petroleum industry from November 4.

At its 2018 peak, Iran exported around 3 million barrels per day (bpd) of crude oil, equivalent to 3 per cent of global consumption, and the Organization of the Petroleum Exporting Countries (OPEC) has little spare capacity to make up for an expected shortfall in Iranian exports.

Reflecting expectations of lower supply from the Middle East, Oman crude futures on the Dubai Mercantile Exchange touched their highest in four years on Wednesday, briefly jumping above $90 a barrel.

"Oil prices remain in the Bulls domain amid concern that US sanctions on Iranian crude oil exports will result in much tighter physical market conditions once they take effect in November," said Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA in Singapore.

"Markets could still be underestimating the supply crunch from Iran sanctions," he added.

While global oil markets tighten, supply in the United States is ample, thanks to rising output.

US crude production &lt;C-OUT-T-EIA&gt; hit a record 11.1 million bpd in the week ending Sept. 21, according to data from the Energy Information Administration (EIA).

That's an increase of almost a third since mid-2016.

Commercial crude stocks rose by 1.85 million barrels, to 395.99 million barrels, the EIA data showed.

Oil prices rose on Thursday, lifted by looming US sanctions against major crude exporter Iran. Brent crude futures <LCOc1> were at $82.04 per barrel at 0104 GMT, up by 70 cents, or 0.

Oil prices rose on Thursday, lifted by looming US sanctions against major crude exporter Iran. Brent crude futures <LCOc1> were at $82.04 per barrel at 0104 GMT, up by 70 cents, or 0.9 per cent from their last close. US West Texas Intermediate (WTI) crude futures <CLc1> were at $72.35 a barrel, up 78 cents, or 1.1 per cent from their last settlement. Traders said oil markets were tightening ahead of Washington's planned sanctions on Iran's petroleum industry from November 4. At its 2018 peak, Iran exported around 3 million barrels per day (bpd) of crude oil, equivalent to 3 per cent of global consumption, and the Organization of the Petroleum Exporting Countries (OPEC) has little spare capacity to make up for an expected shortfall in Iranian exports. Reflecting expectations of lower supply from the Middle East, Oman crude futures on the Dubai Mercantile Exchange touched their highest in four years on Wednesday, briefly jumping above $90 a barrel. "Oil prices remain in the Bulls domain amid concern that US sanctions on Iranian crude oil exports will result in much tighter physical market conditions once they take effect in November," said Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA in Singapore. "Markets could still be underestimating the supply crunch from Iran sanctions," he added. While global oil markets tighten, supply in the United States is ample, thanks to rising output. US crude production <C-OUT-T-EIA> hit a record 11.1 million bpd in the week ending Sept. 21, according to data from the Energy Information Administration (EIA). That's an increase of almost a third since mid-2016. Commercial crude stocks rose by 1.85 million barrels, to 395.99 million barrels, the EIA data showed.

Oil prices rise ahead of US sanctions against Iran

Oil prices fell for a sixth day on Friday after Iran announced plans to boost production and U.S. crude output hit record highs, adding to concerns about a sharp rise in global supplies.

The falls come amid a rout in global share markets as inflation fears grip investors.

Brent futures were down 44 cents or 0.7 percent, at $64.37 a barrel by around 0700 GMT. On Thursday, Brent fell 1.1 percent to its lowest close since Dec. 20.

U.S. West Texas Intermediate (WTI) crude was down 62 cents, or 1 percent, at $60.53 a barrel, having settled down 1 percent in the previous session at its lowest close since Jan. 2.

Both contracts have fallen more than 9 percent from this year&#39;s high point in late January.

&quot;Bets on further rising oil and metals prices, for example by hedge funds, have climbed to excessively bullish levels,&quot; said Carsten Menke, commodities research analyst at Swiss Bank Julius Baer.

&quot;We see oil prices dropping towards and below $60 per barrel,&quot; he said.

OPEC member Iran on Thursday announced plans to increase production within the next four years by at least 700,000 barrels a day.

Meanwhile, the U.S. Energy Information Administration (EIA) this week said crude production last week rose to a record high of 10.25 million barrels per day (bpd).

At that level, U.S. production would overtake the current output in Saudi Arabia, the biggest producer in the Organization of the Petroleum Exporting Countries (OPEC).

OPEC and other producers, including Russia, have cut production since January 2017 to force down global inventories, but these cuts have been offset by rising U.S. oil production.

China plans to launch its long-awaited crude oil futures contract on March 26, two sources familiar with the situation said on Friday, a move that will potentially shake up the pricing of the world&#39;s largest commodity market.

The launch next month will mark the end of a push to create Asia&#39;s first oil futures benchmark, which would give China more clout in pricing crude in the region and a share of the trillions of dollars in the oil futures trade.

OPEC member Iran on Thursday announced plans to increase production within the next four years by at least 700,000 barrels a day.

Oil prices fell for a sixth day on Friday after Iran announced plans to boost production and U.S. crude output hit record highs, adding to concerns about a sharp rise in global supplies. The falls come amid a rout in global share markets as inflation fears grip investors. Brent futures were down 44 cents or 0.7 percent, at $64.37 a barrel by around 0700 GMT. On Thursday, Brent fell 1.1 percent to its lowest close since Dec. 20. U.S. West Texas Intermediate (WTI) crude was down 62 cents, or 1 percent, at $60.53 a barrel, having settled down 1 percent in the previous session at its lowest close since Jan. 2. Both contracts have fallen more than 9 percent from this year's high point in late January. "Bets on further rising oil and metals prices, for example by hedge funds, have climbed to excessively bullish levels," said Carsten Menke, commodities research analyst at Swiss Bank Julius Baer. "We see oil prices dropping towards and below $60 per barrel," he said. OPEC member Iran on Thursday announced plans to increase production within the next four years by at least 700,000 barrels a day. Meanwhile, the U.S. Energy Information Administration (EIA) this week said crude production last week rose to a record high of 10.25 million barrels per day (bpd). At that level, U.S. production would overtake the current output in Saudi Arabia, the biggest producer in the Organization of the Petroleum Exporting Countries (OPEC). OPEC and other producers, including Russia, have cut production since January 2017 to force down global inventories, but these cuts have been offset by rising U.S. oil production. China plans to launch its long-awaited crude oil futures contract on March 26, two sources familiar with the situation said on Friday, a move that will potentially shake up the pricing of the world's largest commodity market. The launch next month will mark the end of a push to create Asia's first oil futures benchmark, which would give China more clout in pricing crude in the region and a share of the trillions of dollars in the oil futures trade.

Oil falls for sixth day as supply fears mount