Supply draw, Gulf of Mexico storm push oil prices upward

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U.S. West Texas Intermediate (WTI) crude futures climbed $1.28 to $59.11 by 1136 GMT, after hitting a session high of $59.31.

Some oil market observers believe if the USA and China can truly produce a workable trade accord for the world's two largest economies, demand would be sufficient to carry crude back to $75 per barrel.

Oil fell on Tuesday amid worries over the outlook for demand after the most recent indicators that worldwide commerce disputes have been dragging on the worldwide economic system, though the potential for conflicts within the Center East supplied assist to costs.

Washington has imposed sanctions that eliminate benefits Iran was meant to receive in return for agreeing to curbs on its nuclear program under the 2015 deal with world powers.

The White House said in April that tightening sanctions on Iran will have "no material impact" on oil prices given the large supply of United States oil on the global market.

The storm is forecast to bring as much as 10 inches (25 centimeters) of rain in parts of Louisiana and MS in the next seven days, according to the U.S. Weather Prediction Center in College Park, Maryland.

Texas and the Federal Offshore Gulf of Mexico (GoM), the two largest crude oil production areas in the US, both reached record levels of production in April, at 4.97 Mmbpd and 1.98 Mmbpd, respectively, the Energy Information Administration reported, Kallanish Energy learns. "There has been no progress in the U.S".

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It attributed the revision to lower-than-expected global fuel consumption and weakening economic growth, citing "increasing uncertainty" and "increasingly weak global economic signals". -China trade war, heading into its second year, dampens prospects for global economic growth.

Investors considering USO or other oil exchange traded products have several factors to consider including the Organization of Petroleum Exporting Countries (OPEC).

The U.S. and global benchmarks have gained this year as the Organization of the Petroleum Exporting Countries (OPEC) and big producers such as Russian Federation have curbed output to bolster prices.

EIA forecasts Permian production will average 4.4 Mmbpd in 2019, a 920,000 Bpd increase from its 2018 average. This follows discovery of contaminated Urals crude that affected the Druzhba pipeline to Europe.

Oil prices were mixed on Monday amid market concerns over heightening geopolitical risks after Iran crossed the 3.67 percent limit of uranium enrichment purity.

Oil prices gained more than 1% in early trade on Wednesday, led by US crude after an industry group reported that USA stockpiles fell for a fourth week in a row, alleviating concerns about oversupply.

The EIA on Tuesday revised its USA crude oil production forecast for 2019 to an all-time high of 12.36 million bpd.

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