USA oil prices dip on rising crude inventories, record output

USA oil prices dip on rising crude inventories, record output

USA oil prices dip on rising crude inventories, record output

Meanwhile, US sanctions against Venezuela's oil industry are expected to freeze sales proceeds of Venezuelan crude exports to the United States.

Despite supportive weekly US energy data, worsening Venezuelan production and relentless supply OPEC cuts intermittently propping oil prices up this week, "there are still fears of slowing demand", said Phil Flynn, analyst at The Price Futures Group brokerage in Chicago.

Guaido's team is planning for a post-Maduro government with an emergency scheme to supply fuel domestically, given widespread shortages across Venezuela, Goicoechea said.

United States government data on Wednesday showed that domestic crude inventories rose by less than expected last week even as refineries hiked output.

U.S. West Texas Intermediate (WTI) crude futures were at $53.74 per barrel at 0153 GMT, up 8 cents from their last settlement.

Other than the inventory levels, comments from the Azerbaijan's oil minister that OPEC+ alliance needs to extend production cuts in order to support crude recovery also please the energy buyers.

USA crude inventories rose by 2.5 million barrels last week and gasoline stocks also increased, the American Petroleum Institute said.

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Energy information provider Argus Media, said producer cuts will eventually help level oil prices again as 2019 wears on. The daily average exports of crude oil over the past four weeks were about 2.5 million barrels, up by about 1 million barrels per day year-on-year.

Washington said last week that after April 28 foreign companies would not be able to conduct business with Venezuelan state-run oil firm PDVSA using the US financial system, effectively banning them from paying in USA dollars.

Venezuela, like fellow OPEC members Iran and Libya, was exempt from production curbs under the OPEC+ deal on expectations that its output faced involuntary downward pressure in 2019. -China trade dispute have also weighed on the market.

Higher American output is threatening to offset cuts by the Organization of Petroleum Exporting Countries and its allies.

However, a stronger U.S. dollar limited gains on Wednesday. -China trade dispute. Oil prices fell on Tuesday after a survey showed euro zone business expansion almost stalled in January. A week earlier, inventories recorded a 1.1-million-barrel decline and production averaged 5 million bpd.

"We believe that financial markets may be overestimating the risks of a global recession", said Jean-Pierre Durante, Head of Applied Research at Pictet Wealth Management.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will lead a delegation to Beijing next week to lay the groundwork for a meeting between Presidents Donald Trump and Xi Jinping later this month.

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