Global demand for oil is likely to moderate this year, as the price of crude nears $80 a barrel and many key importing nations no longer offer consumers generous fuel subsidies, the International Energy Agency (IEA) said on Wednesday.
"The API inventory data in the US fits with. a topping pattern - or at least a decent pause - for oil prices at the moment", said Greg McKenna, chief market strategist at futures brokerage AxiTrader.
Goldman also said the tight market left "room for OPEC to exit (its production cuts) without significant price impact".
Potential oil supply disruptions in Iran and Venezuela have prompted oil traders to focus on geopolitics rather than fundamentals, the International Energy Agency (IEA) said in its latest monthly report Wednesday, warning that any supply cuts could prompt prices to rocket.
OPEC revised its oil demand growth estimate by 25,000 barrels per day (bpd) from the April 2018 report to 1.65 million bpd.
Rosneft's oil and gas condensate output in the first quarter was down 1.2 percent year on year because of the global supply pact with OPEC, the company said.
OPEC's success with the oil production cutting deal has been to a significant extent aided by Venezuela's catastrophically dropping production as the country grapples with foreign exchange shortage, USA sanctions, and a devastating economic crisis.
In Venezuela, meanwhile, the IEA noted that "the pace of decline of oil production is accelerating and by the end of this year output could have fallen by several hundred thousand barrels a day". U.S. WTI futures were also up, gaining 0.36 percent to trade at $71.75 per barrel. The high price of Brent is attracting US exports.
Growth in USA output, meanwhile, has tamed price moves for US benchmark crude in recent sessions, preventing it from notching a fresh multiyear high.
USA crude stockpiles slipped for a second week as the summer driving season approaches, government data showed yesterday.
Saudi Arabia has acknowledged the need to work with producers and consumers to mitigate possible supply shortfalls, which could be offset by higher expected growth in United States oil output of 120,000 bpd this year.
"During the meeting, Mr. Khoshrou conveyed Mr. Zarif's message that Iran hopes China will maintain the levels of imports", said one person briefed on the meetings.
From 1999-2007 we saw oil prices rise driven by global demand growth in China and rising prices on average did not slow demand.