Oil costs tumble on rising U.S. rig count, Illinois refinery outage – Reuters

LONDON (Reuters) – Oil costs fell on Monday as an uptick in U.S. drilling, a shutdown precipitated by a fireplace at a indispensable U.S. refinery and considerations about U.S.-Chinese language trade talks all overshadowed improve from OPEC-led offer restraint.

FILE PHOTO: An oil pump jack pumps oil in a arena shut to Calgary, Alberta, Canada on July 21, 2014. REUTERS/Todd Korol/File Photo

Benchmark Brent oil were down seventy one cents, or 1.14 percent, to $sixty one.39 a barrel at 1445 GMT.

U.S. West Texas Intermediate (WTI) coarse fell $1.19 cents or 2.26 percent to $fifty one.fifty three.

“Oil costs are quiet trying to determine what lead to direct. On the one hand, there is the OPEC+ decrease memoir, now coupled with increasing points around Venezuelan offer”, Vienna-based totally consultancy JBC Energy acknowledged.

“On the same time, it has to be argued that most of the industrial files that has been launched over the outdated couple of days has no doubt no longer been too encouraging, and U.S.-Chinese language trade talks are also apparently no longer progressing very snappily.”

Energy corporations in the United States closing week increased the resolution of oil rigs working for the 2d time in three weeks, pointing to a extra rise in U.S. coarse production, a weekly file by Baker Hughes acknowledged on Friday.

WTI costs were also weighed down by the closure of the 2d supreme coarse distillation unit (CDU) at Phillips sixty six’s Wood River, Illinois, refinery following a fireplace on Sunday.

Commerce talks between Washington and Beijing resume this week with a delegation of U.S. officers touring to China for the next spherical of negotiations.

The United States has threatened to develop tariffs already imposed on goods from China on March 1 if the trade talks pause no longer develop an agreement, a switch which would possibly support gradual growth in gasoline ask.

U.S. President Donald Trump acknowledged on Thursday he did no longer opinion to fulfill with Chinese language President Xi Jinping sooner than the March 1 closing date, dampening hopes of a like a flash trade pact.

Costs were buoyed, nonetheless, by output curbs from the Group of the Petroleum Exporting Worldwide locations and its allies, including Russia, a team is named OPEC+.

The deal, fantastic from January, targets to diminish 1.2 million bpd till the stay of June to prevent an overhang, in a switch producers and diverse analysts demand to soon support steadiness offer and ask.

Suhail Al Mazrouei, the Energy Minister of the United Arab Emirates, acknowledged on Monday the oil market need to enact this steadiness in the foremost quarter of 2019.

OPEC and its allies meet on April 17 and 18 in Vienna to evaluation the agreement, however a draft cooperation constitution seen by Reuters fell searching a brand new formal alliance among the many producers.

U.S. sanctions on Venezuela, along with older sanctions on fellow OPEC member Iran, have faith also prevented coarse costs from falling extra.

Reporting by Noah Browning; editing by Emelia Sithole-Matarise; Extra reporting by Henning Gloystein; Enhancing by Edmund Blair and Stamp Potter

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