Oil prices rise on ongoing OPEC-led supply cuts

Khalid al Falih speaks during a news conference in Riyadh

Pradhan red flags higher crude oil prices to Saudi Arabia

Meanwhile, West Texas Intermediate gained 0.33 percent to $56.98, while Brent crude, the global benchmark, recovered 0.23 percent to $66.73 per barrel on March 12.

High drilling activity previous year resulted in a more than two million barrels per day rise in production, to 12.1 million bpd reached this February, making the United States the world's biggest producer of crude oil ahead of Russian Federation and Saudi Arabia.

"It will see the United States account for 70 percent of the rise in global oil production and some 75 percent of the expansion in LNG trade over the next five years".

Saudi Energy Minister Khalid al-Falih told Reuters two days ago that it would be too early to change a production curb pact agreed by the Organisation of Petroleum Exporting Countries (OPEC) and its allies, which includes Russian Federation, another major producer, before June.

Riyadh has voluntarily cut its supply by more than the deal requires and in April will keep output "well below" 10 million bpd, the Saudi official said - less than the 10.311 million bpd that the kingdom had agreed to pump.

The sanctions on Venezuela, OPEC's cuts, and the US sanctions on Iran have been curtailing mostly heavy and medium crude grades supply, and as a result, the prices of sour and heavy grades from other countries have been rising. The group agreed to reduce supply by 1.2 million barrels per day (bpd) for six months.

Saudi oil minister Khalid al-Falih told Reuters on Sunday it would be too early to change OPEC output policy at the group's meeting in April.

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The United Arab Emirates in February exceeded its OPEC target for oil output cuts, achieving 119 percent of its goal, the country's energy minister said on Tuesday at an energy conference.

A host of involuntary supply curbs in OPEC members, caused by unrest in Libya and US sanctions on Iran and Venezuela, have also boosted prices.

USA crude oil output will rise almost 2.8 million bpd, growing to 13.7 million bpd in 2024 from an average of just under 11 million bpd in 2018, the IEA said, making the United States by far the biggest oil producer in the world.

"We see a tightening underlying physical crude balance as a key pillar of support for outright prices at this point in the year", said analysts at JBC Energy in a report.

A boom in USA oil supply due to shale oil has countered efforts by OPEC and its partners led by Russian Federation to restrain supplies.

The IEA forecasts demand for OPEC crude will drop in 2020 and then rise to average 31.3 million bpd in 2023. U.S. West Texas Intermediate crude added 57 cents to $57.36.

The first report, from the American Petroleum Institute, an industry group, is due out 2030 GMT, followed by the government's official supply report on Wednesday.

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