Opec tightens its taps as global oil demand stalls

Opec tightens its taps as global oil demand stalls

Opec tightens its taps as global oil demand stalls

The Organisation of Petroleum Exporting Countries (Opec) said it tightened its crude taps to cut nearly 800,000 barrels a day from its oil exports in January after vowing to drain excess oil from the oversupplied market.

Rising investor optimism for a breakthrough in the latest round of U.S. -China trade discussions also boosted futures as members of both sides met in Beijing. On Monday, April Brent crude futures dropped around one percent, reaching minimum since January 29.

Oil prices edged up slightly post-settlement after data from the American Petroleum Institute (API), an industry group, showed US crude oil stockpiles had unexpectedly fallen.

USA crude stockpiles were forecast to have risen last week for a fourth straight week, ahead of data from the American Petroleum Institute (API), an industry group, at 4:30 p.m. EST (2130 GMT).

International Brent crude futures were up 50 cents, or 0.8 percent, at $62.01 per barrel.

Crude oil inventories at the Cushing, Oklahoma facility fell by 502,000 barrels for the week.

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The logo of the Organization of the Petroleum Exporting Countries (OPEC) is seen at its headquarters in Vienna, Austria, December 5, 2018. Global oil cartel Opec said Tuesday it sharply reduced crude oil production last month, after heavyweight Saudia Arabia slashed output and exports fell in crisis-hit Venezuela.

Saudi Arabia plans to pump around 9.8 million bpd in March, more than 500,000 bpd below its target under the deal, its energy minister told the Financial Times.

This rate could rise in coming months as top exporter and OPEC kingpin Saudi Arabia voluntarily lowers supply by more than it agreed. OPEC's share of that cut is 800,000 bpd.

Investors were also hopeful that a new round of U.S. "China trade negotiations and less-ambitious monetary tightening by the U.S. Federal Reserve", OPEC said in the report.

OPEC also cut its forecast for 2019 world oil demand, citing slowing economies and expectations of faster supply growth from rivals, underlining the challenge it faces in preventing an oil glut.

Oil production in Venezuela, which has been rocked by a crippling economic crisis, spiralling political turmoil and United States sanctions, meanwhile sank by 59,000 barrels per day.

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