Crude Oil Price Lower But Remains Range Bound

Karvounis lies at anchor stranded off the coast of Louisiana

Crude Oil Price Lower But Remains Range Bound

Oil prices edged up on Tuesday buoyed by expectations of tightening global supply due to US sanctions on Venezuela and production cuts led by OPEC.

International Brent crude oil futures on Monday were down 20 cents, or 0.32 percent at 0339 GMT to $62.54 a barrel, after closing up 3.14 percent in the previous session to their highest close since November 21.

US crude inventories rose by 2.5 million barrels last week and gasoline stocks also increased, the American Petroleum Institute said.

However, Russian oil output in January missed the target for the output cuts, Energy Ministry data showed on Saturday.

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.

Gasoline stocks increased by 513,000 barrels, less than anticipated, while distillate stockpiles posted a larger-than-expected drop by 2.3 million barrels.

OPEC and 10 partner producers outside the cartel agreed late past year to hold back crude output by 1.2 million barrels a day for the first half of 2019, in an effort to soak up a global supply glut and rebalance the market.

"Basically it's a pretty supportive report", said Phil Flynn, oil analyst at Price Futures Group in Chicago.

"The price has yet to react in any noticeable way", Fritsch said of the sanctions announced last week.

The official, who is also Venezuela's representative to OPEC, added that Caracas would do everything possible to minimise the effects of United States sanctions on the oil and gas giant on the market.

In an interview aired by private broadcaster Televen, Manuel Quevedo, also president of the oil company, commented on US sanctions imposed last week on PDVSA and its USA subsidiary Citgo.

Following a USA decision to impose sanctions on Venezuela's oil industry last week, Guaido and the Trump administration have sought to appoint a new board of directors for Citgo.

"Despite several forays in WTI above our prior resistance of $55, the market continues to draft back down largely under the pressure of this week's stronger dollar", Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.

The oil industry generally believes the curbs will help to balance the market in 2019.

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.

US President Donald Trump said in his State of the Union address that a trade deal was possible with China.

Senior U.S. and Chinese officials are poised to start another round of trade talks next week.

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