Oil nears $67 on Saudi's export cuts

India, Saudi Arabia to revive work on $44-billion West Coast refinery

India, Saudi Arabia to revive work on $44-billion West Coast refinery

The IEA's forecast came just a few weeks after the USA exported a record 3.6 million barrels of crude oil on a daily basis, with the country being also a major exporter of petroleum products including refined fuels.

Brent was at $67.14 a barrel at 1320 GMT, up 47 cents or 0.7 percent.

Oil prices have been offset this year by OPEC members' output cuts, which they agreed upon last year, while USA sanctions on the oil industries of OPEC countries Iran and Venezuela have also pushed supplies down.

America will add 4m barrels per day (bpd) of oil, mostly from the prolific Permian Basin in Texas.

Brent crude futures were at $65.04 per barrel, up 30 cents, or 0.5 per cent.

US crude stocks also fell unexpectedly last week, data from the American Petroleum Institute showed on Tuesday, in a good sign for oil demand as supply from various producers was being curbed.

Oil prices rose on Tuesday, lifted by healthy demand and output cuts led by producer group OPEC.

That's up from an average of around 11 million bpd in 2018. In February, US crude oil exports hit an all-time high, with shipments amounting to over 3.6 million barrels a day.

"While the revision is small, the comforting part for bulls was that the direction of the revision was down rather than up", Harry Tchilinguirian, global oil strategist at BNP Paribas in London, told the Reuters Global Oil Forum.

Last December, OPEC members and their non-OPEC allies agreed to cut a total of 1.2 million barrels of crude oil from their supplies based on the October production levels.

In Venezuela, the worst blackout on record has left most of the South American country without power for six days, leaving hospitals struggling to keep equipment running, food rotting in the tropical heat and exports from the country's main oil terminal stranded.

The update came in spite of a remark by India's oil minister during a meeting with his Saudi counterpart that prices were already climbing higher than India, one of the world's largest importer, was comfortable with.

Saudi Energy Minister Khalid al-Falih told Reuters two days ago that it would be too early to change a production curb pact agreed by the Organisation of Petroleum Exporting Countries (OPEC) and its allies, which includes Russian Federation, another major producer, before June. U.S. crude shipments are projected to stand at 8.93 million barrels a day in five years - just 0.59 million less that Riyadh, and 0.24 million barrels more than Moscow.

The report comes as OPEC countries and allied major oil producers led by Russian Federation are trying to balance the oil market.