OPEC Crude Production Slipped in February on Saudi, Venezuelan Reductions

Oil prices seek balance with supply cuts low demand

Oil prices seek balance with supply cuts low demand

With OPEC withholding supply and USA sanctions preventing Iranian and Venezuelan oil from entering markets, global crude flow data in Refinitiv showed a slight supply deficit likely appeared in the first quarter.

The IEA said OPEC+ production was 0.24 mbd above the target of 44.3 mbd, with overall compliance with reduction targets at 80 percent.

Iraq is committed to OPEC oil output cuts.

The association also warned in its report that, despite efforts to balance the market, the crude supply could grow stronger than demand during 2019.

OPEC, Russia and other non-OPEC producers, an alliance known as OPEC+, are reducing output by 1.2 million bpd from January 1 for six months. The newspaper article also states that USA energy gains will have a price for the environment and that Change.org has described the situation as a "climate disaster". The coalition spans 24 nations, including OPEC members as well as other producers such as Russian Federation and Kazakhstan. That reflects a US supply growth rate of 1.8 million barrels a day (up 10.8%) year over year.

Dead whale in Compostela Valley had 40 kilograms of plastic in stomach
Cetaceans, Blatchley explained, don't drink water directly from the ocean but take it from the food they consume. The Cuvier's beaked whale 'had the most plastic we have ever seen in a whale , ' a marine biologist said.

Russian Energy Minister Alexander Novak will not attend a monitoring panel of Opec and non-Opec oil-producing countries scheduled for Monday in Baku, two sources familiar with his plans told Reuters.

Venezuela's oil production has taken a serious hit in recent years falling from approximately 2.4 million barrels a day (bpd) in 2015 to around 1.2 million bpd, as of the latest figures in February. Russian Federation is about halfway toward meeting its target for oil-output cuts under the OPEC+ deal, with only a couple of weeks remaining to fulfil its pledge. "Total demand is projected to exceed 100 million barrels per day during the second half of 2019", the report said. "We do not want severe volatility in prices because this affects producers and consumers", he added.

Oil rallied on Wednesday on USA government data showing a surprise fall in crude inventory and a lower-than-expected estimate of US crude production growth.

Brent crude oil futures were at $67.43 per barrel, up 20 cents, or 0.3 percent, from their last settlement, and within a dollar of their $68.14 2019-high reached the previous day. Brent touched $67.76 a barrel on Wednesday, its highest since November 16. It earlier hit $60.03 a barrel, the highest since November 12.

"(But), worries about growth and future demand for crude oil remain just worries at this stage", said Saxo Bank's Hansen.

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