Oil Wavers as OPEC Pushes Supply Cut Need, Demand Fears Weigh

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The EIA now expects US oil production to average 12.3 million barrels per day this year and 13.0 million barrels per day next year.

Supply disruptions out of OPEC members Venezuela and Iran helped support oil prices.

U.S. West Texas Intermediate crude futures edged up 29 cents to $58.55.

According to Reuters, now the Iraqi state oil marketing company is also emboldened to trade the Iraqi crude on its own as the market for sour and heavy crude grades is tightening amid OPEC's cuts and the USA sanctions on Iran and Venezuela.

In April past year, the Abu Dhabi National Oil Company (ADNOC) said that it was establishing a new trading unit to "introduce and manage non-speculative trading to further maximize value from every barrel of crude oil and refined product that is produced and marketed by the company".

OPEC sources have said an extension of the supply-cutting pact is the likely scenario.

Two sources told Reuters that the United States also aims to curb Iran's crude exports by about 20% to below 1 million barrels per day (bpd) from May, likely reining in waivers for Tehran's remaining customers.

EIA: The US imports and exports substantial volumes of petroleum
Tight Market Fears Cause Crude to Climb Again - with $60-Plus Viewed as Inevitable

EIA expected these trends "to continue over the next several years".

Oil exports at 3.5m b/d, production 4.5m b/d. A week earlier, crude inventories had increased by over 7 million barrels, more than thrice the expected rise.

Forecasts slowed U.S. production to a record of 13 million barrels per day (bps) until the third quarter of 2020, instead of the second quarter of previous forecasts.

The U.S.' crude oil production was estimated to average 12.4 million bpd this year and 13.2 million bpd next year, according to the EIA's report in February.

The trade volume of petroleum in the United States includes crude oil, petroleum products, and natural gas plant liquids, according to EIA. Petrol stocks fell by 5.8 million barrels, compared to analysts' forecasts in a 2.5 million barrel survey at Reuters. Crude oil imports to the USA fell last week by 523,000 bpd to 6.4 million bpd.

Data from the Petroleum Institute showed that distillate stocks, including diesel and fuel oil, increased by 195,000 barrels, compared to a forecast of 1.9 million barrels.

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