Oil prices fall with rising U.S. stocks, record output

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In its latest Short-Term Energy Outlook released Tuesday, the EIA estimated that USA crude oil production averaged 12.1 million b/d in March, up 300,000 b/d from the February average.

The recent downward revision to the 2019 global growth forecasts made by the International Monetary Fund combined with the renewed US-EU trade worries continue to cast doubt on the global economic growth and its impact on the oil demand.

An OPEC monthly report released on Wednesday showed that Venezuela's oil output sank last month to a long-term low below 1 million barrels per day (bpd), due to USA sanctions and blackouts.

Prices for petroleum rose on Wednesday towards five-month highs hit the previous day as production cuts by the Organization of the Petroleum Exporting Countries and US sanctions on Iran and Venezuela continued to tighten supply, though economic worries increased.

Goldman said it expected Brent to average $72.50 per barrel during the second quarter, up from a previous forecast of $65 per barrel.

Russian oil output reached a national record high of 11.16 million bpd past year. The group pegged 2018 global oil demand growth at 1.41 million b/d.OPEC also revised down non-OPEC oil supply growth in 2019 by 60,000 b/d "due to extended maintenance in Kazakhstan, Brazil, and Canada".

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"OPEC's ongoing supply cuts and United States sanctions on Iran and Venezuela have been the major driver of prices throughout this year, " said Hussein Sayed, Chief Market Strategist at futures brokerage FXTM.

Goldman Sachs also said oil prices "will decline gradually from this summer as shale and OPEC production increases".

The kingdom also self-reported production of 9.79 million bpd, its lowest since January 2017 and a fall of 350,000 bpd month on month. That is much below its quota of 10.31 million b/d under the cut agreement.The kingdom has decreased production by 1.30 million b/d since November when it pumped a record-high of 11.09 million b/d.

After a production glut lead to prices dropping past year, OPEC members and allies including Russian Federation agreed in December to trim production.

Kingpin Saudi Arabia's production, meanwhile, fell by 324,000 bpd, according to OPEC's sources, the report said.

A majority of the increase came once again from the Gulf Coast region, where inventories rose 5.4 million barrels to 232.2 million barrels. OPEC said it had made some progress towards achieving this goal.

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