Oil prices up with OPEC cuts, supply risks

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Oil prices up with OPEC cuts, supply risks

The report pointed to a slightly under-supplied market in 2019 if OPEC kept pumping at March's level.

Libya, which is also exempt from the deal, pumped 1.098 million bpd in March, up 196,000 bpd from the previous month, but output remains at risk as the country is on the brink of a possible civil war.

"Equities are getting off to a good start with earnings season and the dollar index being weaker helps reaffirm confidence in the oil market", said Phil Streible, senior commodities strategist at RJO Futures in Chicago.

U.S. West Texas Intermediate (WTI) crude futures rose 56 cents to $64.14 a barrel. The group pegged 2018 global oil demand growth at 1.41 million bpd.

Earlier this week, sources familiar with the matter told Reuters that OPEC could raise oil output from July if Venezuelan and Iranian supply drops further and prices keep rallying, because extending production cuts with Russian Federation and other allies could overtighten the market.

RBC also thinks - despite the rumours that influenced Thursday's crude trading - that OPEC will extend its deal to cap output, keeping the cost of crude near the $75-$80 range many nations need to balance their budgets.

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Bombing by a warplane occurred on Friday near the Mellitah oil and gas plant, jointly operated by Italy's ENI and Libyan state oil firm NOC, a Libyan National Army (LNA) military source and residents said.

OPEC could raise oil output from July if Venezuelan and Iranian supply drops further and prices keep rallying, because extending production cuts with Russian Federation and other allies could overtighten the market, sources familiar with the matter said.

It is expected that OPEC may consider raising oil output from July if disruptions continue and prices keep rallying.

USA energy companies this week increased the number of oil rigs operating for a second week in a row, bringing the total count to 833, General Electric Co's Baker Hughes energy services firm said in its closely followed report on Friday.

At the last OPEC meeting in Vienna, the group's members agreed to slash output by 812,000 bpd, with Russian Federation and nine other non-OPEC allies committing to a cut of 383,000 bpd for the first six months of 2019. However, U.S. gasoline stocks fell by a whopping 7.7 million barrels last week.

"We tend to focus on Trump's reaction to gasoline prices, but the Russian government is also continuously anxious about the street discontent factor that comes with rising gasoline prices", Jakob said.

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