Crude oil futures up 0.3% on global cues

Oil market in turmoil non-OPEC nations led by US may help rescue

Oil market in turmoil non-OPEC nations led by US may help rescue

Saudi Arabia's oil-exporting adventure, which started nearly 70 years ago, brought forward, led by Saudi Arabia, the initiative to establish the Organization of Petroleum Exporting Countries (OPEC) with 11 Arab and two Latin American countries in 1960. This led to the US taking a number of steps in the 1980s to take away OPEC's monopoly in determining oil prices, and the USA has strengthened global commodity markets with Chicago and NY.

While Goldman was overt in its positive assessment of the crude market, the International Energy Agency - which has routinely made gloomy proclamations about the health of the commodity, on Friday inadvertently deflated a fear that has occupied the minds of many analysts: Venezuela.

Oil prices rose yesterday, driven by OPEC's current production restrictions and U.S. sanctions against Iran and Venezuela.

The WTI Crude Oil market had a choppy session on Thursday, as we have broken above the 200 day EMA.

"Oil markets are reacting to the possibility the cuts will be extended", Naohiro Niimura, a partner at Market Risk Advisory, said by phone.

USA crude oil demand in 2019 is expected to rise by 360,000 barrels to 20.81 million barrels per day, a former Energy Information Administration (EIA) for an increase of 350,000 barrels per day.

First and foremost is the cut in production agreed to by OPEC and some non-OPEC countries, which also equals 1.2 million barrels a day. We will observe the economic-political consequences of the USA cornering Saudi Arabia, Iran and Venezuela in the global oil game. Market shortages have been exacerbated by U.S. sanctions on oil exports by OPEC members Iran and Venezuela.

With a nationwide blackout that paralysed the country for one week, demonstrating the unreliability of the country's electricity network, new questions are being raised about Venezuela's ability to continue to produce and export oil. "The United States is increasingly leading the expansion in global oil supplies, with significant growth also seen among other non-Opec producers, including Brazil, Norway and new producer Guyana", the IEA report underlined. With increasing competition, the global demand for OPEC production will not return to pre-2016 levels during the period in question.

On the imports side, EIA said that most of the reduction in US petroleum imports was of light, sweet crude oil, as those barrels were replaced by domestic production of a similar quality.

USA crude ended the week 4.1 percent higher, and Brent was up 1.9 percent. The report states that daily US export capacity during the period in question will pass Russia's and get close to Saudi Arabia's with 9 million barrels.

Energy markets are being buffeted by a number of economic crosswinds.

United States crude oil production also dipped, falling by 100,000 barrels per day (bpd) to 12 million bpd. Production in Iran and Libya, also exempt, was little changed.