Oil falls below $62 on USA inventories, fading Venezuela concerns

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The Organisation of the Petroleum Exporting Countries, Russia and other non-OPEC producers - an alliance known as OPEC+ - agreed in December to reduce supply by 1.2 million bpd from January 1.

Earlier, oil price came under pressure following weekly data showing rise in United States stocks.

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

"The weekly report from the EIA on US oil stocks was bullish for outright prices, plain and simple", said Tamas Varga, an analyst at PVM Oil Associates Ltd.in London.

Oil fell below $62 a barrel on Wednesday after a report showed a rise in USA crude inventories, while concerns about the impact on global supplies of US sanctions on Venezuela faded. Elsewhere, supplies from OPEC face heightened uncertainty after Libya's eastern leader Khalifa Haftar said his forces have taken control of the country's largest oil field.

U.S. West Texas Intermediate (WTI) crude was down 13 cents at $53.53. The contract increased 35 cents to $54.01 on Wednesday.

When adding in all imports and exports of crude oil and petroleum products, the United States imported a net 1.9 million barrels per day last week, seeing a growth of 177,000 barrels from the January 19-25 week. The month was Brent crude's best month since April 2016.

The price of USA crude continues to rise and the outlook is still constructive on tight supplies and concerns about Venezuelan output.

Some analysts, however, were relieved that US crude oil inventories rose by only 1.3 million barrels in the week to February 1, against expectations for an increase of 2.2 million barrels.

United States distillate stocks fell by 2.3 million barrels, while inventories of other refined fuels dropped by 2.9 million barrels.

The Bloomberg Dollar Spot index has risen 1 percent this month, capping gains in crude and other commodities priced in the currency.

With a nervous market, traders are focused on the U.S. State of the Union address by President Donald Trump. Energy information provider Argus Media, said producer cuts will eventually help level oil prices again as 2019 wears on.

Over the past four weeks, crude oil imports averaged around 7.5 million barrels per day, down by 7.3 percent from a year ago.

TransCanada Corp.'s Keystone pipeline and Enbridge Inc.'s Platte pipeline were shut Wednesday to investigate a possible oil spill in Missouri. The sanctions aim to block USA refiners from paying into PDVSA accounts controlled by Venezuelan President Nicolas Maduro.

Market participants are also watching for developments surrounding the U.S. The lender sees Venezuelan oil exports quickly falling by 300,000 barrels a day to about 700,000 barrels a day.