Venezuelan continued oil fallout presents a challenge for global markets, says IEA

Venezuela's oil production has fallen from approximately 2.4 million bpd in 2015 to around 1.2m bpd as of the latest figures in February

A pumpjack pumps oil from a well on a farmer's frozen field in a Pembina oil field near Pigeon Lake, Alberta, Canada.

Since the start of the year, oil has rallied around a quarter since the start of the year.

Futures in NY traded near a four-month high, and on course for a 5% weekly advance.

EIA expected these trends "to continue over the next several years".

According to Bloomberg, in its monthly report, the Organization of Petroleum Exporting Countries cut forecasts for world oil demand and boosted projections for non-OPEC supply, particularly in the second half of the year. The newspaper article also states that US energy gains will have a price for the environment and that Change.org has described the situation as a "climate disaster". Still, lingering concerns over record output in America and its prolonged trade tiff with China that threatens to hurt global growth continue to weigh on prices.

"OPEC's compliance was a robust 94 percent, compared to 51 percent from non-OPEC", said the IEA, adding that major producer Russian Federation was continuing to adjust its production gradually.

On March 14, United States crude oil April futures rose 0.6% and settled at $58.61 per barrel, the highest closing level for U.S. crude oil active futures since November 12. The contract rose 35 cents to US$58.61 on Thursday, the highest since November 12.

Brent crude hit a 2019 peak of $68.14 per barrel before falling to $67.47 by 1035 GMT, down 8 cents or 0.12 percent from Wednesday's close. It kept its forecast for growth in global oil demand this year unchanged at 1.24 million bpd.

"At the same time, (OPEC) production cuts have increased the spare capacity cushion". The Joint Technical Committee and Joint Ministerial Monitoring Committee deliberations in Baku will be followed by another meeting in Vienna next month.

Global oil demand is expected increase by 7.1 million barrels per day during the 2019-2024 period to reach 106.4 million barrels per day and that the biggest factors in the increase in oil demand are the economic growth in Asia and the petrochemical industry in the U.S. It is predicted that the U.S., Brazil, Iraq, Norway, United Arab Emirates (UAE) and Guyana will be the countries that will make the greatest contribution to global oil supply to respond to the increase in global demand. As a result, the group indicated that a renewed surplus could emerge in the fourth quarter even as planned and involuntary cutbacks trim the group's overall production.

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