OPEC projects to tighter oil market in 2019

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The US crude output level remained at a record 12.2 million barrels per day (bpd).

The combined supply cuts have helped to drive a 32 percent rally in crude prices this year to almost $72 a barrel, prompting pressure from U.S. President Donald Trump for OPEC to ease its market-supporting efforts.

The WTI Crude Oil market tried to rally during the day on Friday but gave back about half of the gains by the time we got into NY afternoon trading.

Earlier this week, the Energy Information Administration reported that US crude inventories rose to their highest level since November 2017.

"While no industry lasts forever, the age of oil is far from over", Bernstein said.

"We see Brent and WTI prices averaging $75 per barrel and $67 per barrel respectively through the rest of this year, but risk is asymmetrically skewed to the upside", RBC Capital Markets said in a note. The group pegged 2018 global oil demand growth at 1.41 million bpd. The plant supplies Italy with gas through the Greenstream pipeline.

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Opec+ members will meet in June to discuss oil policy.

A fourth OPEC source said there were talks about ideas such as whether OPEC should continue with the cuts alone, a deal extension of only three months to keep Russian Federation on board or pumping more if prices rise further. However, U.S. gasoline stocks fell by a whopping 7.7 million barrels last week.

Oil prices have recovered sharply since December, when they fell to a 15-month low, and ICE Brent has been trading a five-month high of above $71 per barrel this week.

On the demand side, Chinese data showed exports rebounded last month, driving USA and euro zone bond yields to three-week highs and helping offset weaker imports and reports of another cut in German growth forecasts. The rise of oil prices to $70 per barrel and higher increases the risk of a slowdown in demand amid uncertainties in the global economy, according to an April report from the International Energy Agency (IEA).

Putin aside, U.S. President Donald Trump is also against high oil prices, which he fears will hurt his 2020 reelection campaign.