Oil slips below $62 on rise in US inventories

OPEC's oil exports to US fell to five-year low in January

Oil Edges Up As Market Eyes Tighter Supply | NTA.ng - Breaking News, Nigeria, Africa, Worldwide

Brent crude, the global benchmark, was trading below $63 a barrel on Tuesday compared to $61 on January 29, the day after the United States imposed sanctions on Venezuelan state oil firm PDVSA.

He told CNBC, "The volatility every year is a good $20 to $25 a barrel between low and high; December was kind of the nightmare for the world where the swings were $50 at a low, $86 at a high and $68 for the average of Brent".

US crude futures were down 17 cents, or 0.31 percent, at $54.39 per barrel by 1215 GMT.

Crude inventories rose by 2.5 million barrels in the week ended February 1 to 448.2 million, compared with analysts' expectations for an increase of 2.2 million barrels.

Gasoline stocks increased by 513,000 barrels, less than anticipated, while distillate stockpiles posted a larger-than-expected drop by 2.3 million barrels. "Because the number was a little disappointing, it played into the slowing demand scenario", said Phil Flynn, oil analyst at Price Futures Group in Chicago.

In 2018, India had imported 16.5 mln tn of crude oil from the South American country, accounting for around 8% of the total crude oil imports.

The head of state-run Kuwait Petroleum Corp, Hashem Hashem, said on Tuesday that global oil supply could be hit this year by big reductions in exports from Venezuela.

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These have now been completed including online calculators, software, and a technical note describing the changes. The update doesn't have much effect for civilian users of magnetic navigation but is critical to military users.

Inventory data from the Energy Information Administration will be released later today.

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.

Oil prices have been on the rise since the US Treasury announced the seizure of $7 billion in assets of Venezuela's state oil firm PDVSA and its US subsidiary Citgo last week.

Analysts said United States sanctions on Venezuela had focused market attention on tighter global supplies.

However, a stronger USA dollar limited gains on Wednesday. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Brent reached $63.63 a barrel, the highest since December 7, while WTI climbed to $55.75 a barrel, the strongest since November 21.

Also dampening market sentiment were worries about weaker global economic growth and the U.S. Oil prices fell on Tuesday after a survey showed euro zone business expansion almost stalled in January.

With a nervous market, traders are focused on the US State of the Union address by President Donald Trump. Senior U.S. and Chinese officials are poised to start another round of talks next week.

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