Oil slips on API report of US inventory rise

Oil slips on API report of US inventory rise

Oil steadied near $54 a barrel as a decline in American fuel inventories signaled that demand remains healthy despite ongoing concerns about the global economy.

"This is already quite advanced, I hope that next week it can be announced by our representative in the United States", Paparoni said, in reference to Venezuelan opposition envoy Carlos Vecchio.

The producers known as OPEC+ began cutting production by 1.2 million barrels per day from last month to avert a new supply glut and OPEC has delivered nearly three-quarters of its pledged cutback already, according to a Reuters survey.

Brent crude futures rose 62 cents, or 1 percent, to $62.60 a barrel by 11:33 a.m. EST (1633 GMT).

Weighing on oil markets, USA government data showed new orders for US -made goods unexpectedly fell in November, with sharp declines in demand for machinery and electrical equipment.

"We've been turning the heat up on the regime", Mnuchin said Wednesday, touting the effectiveness of fresh sanctions that President Donald Trump's administration imposed January 28.

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Prices also dipped after data showed US crude inventories at Cushing, Oklahoma, the delivery point for USA crude futures, rose by more than 943,000 barrels in the week to February 1, traders said, citing data from market intelligence firm Genscape. The global benchmark crude was at an $8.36 premium to WTI for the same month.

Venezuela's oil exports fell to a 10-month low in January following new sanctions on the nation's state-owned oil company Petroleos de Venezuela SA that effectively block Maduro's regime from exporting crude to the U.S.

"While Venezuela's output reportedly rose last month, fresh USA sanctions on the country could see 0.5 to 1 percent of global supply curtailed", said Vivek Dhar, commodities analyst for Commonwealth Bank of Australia in a note on Monday.

Russia has been in full compliance with its pledge to gradually cut its oil production, Russian Energy Minister Alexander Novak said in a statement on Monday, adding that production decreased by 47,000 barrels per day (bpd) in January from October.

More stringent sanctions on Venezuela that bar companies that do business with PDVSA from accessing the US financial system resemble Washington's measures on Iran, ANZ Banking Group said.

U.S. President Donald Trump said in his State of the Union address that a trade deal was possible with China. -China trade dispute have also weighed on the market.

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