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* Slowdown could reduce demand growth below 1 million bpd – Bernstein
* OPEC cuts, US sanctions against Iran, support from Venezuela
* Saudi Arabia indicates that OPEC cuts may need to be continued
* US oil drilling and production levels: tmsnrt.rs/2V1T9qL (Added US manufacturing slowdown and updated prices)
By Henning Gloystein
SINGAPORE, March 18 (Reuters) – Oil prices fell on Monday, fearing that an economic slowdown will dampen fuel consumption, but crude markets remain largely buoyed by supply cuts led by the government. OPEC producer group and US sanctions against Iran and Venezuela.
The Brent oil futures were at $ 67.03 a barrel at 2:31 GMT, down 13 cents (0.2%) from their last close, but not very far from the $ 68.14 high a barrel reached in 2019 last week.
West Texas Intermediate (WTI) futures in the United States were $ 58.32 per barrel, down 20 cents or 0.3% from their latest settlement, and close to their peak of 58.95 dollars in 2019 compared to the previous week.
"The biggest downside risk to our view of the oil price is weak demand driven by slower economic growth. Our baseline scenario is that global oil demand will grow by 1.3 million barrels per day (bpd) by 2019 … A synchronized global slowdown in growth could bring global demand growth to less than 1 million barrels a day. bpj, "said Bernstein Energy Monday.
US manufacturing output fell for a second consecutive month in February, signaling that the world's largest economy slowed in the first quarter.
In Asia, Japanese exports fell for a third consecutive month in February, reflecting growing pressure from slowing global demand.
Despite this, oil prices have risen about a quarter since the beginning of the year with US sanctions against Iran and Venezuela, and like the Organization of the Petroleum Exporting Countries (OPEC) and non-oil allies. affiliates like Russia – known as OPEC + – are committed. retain 1.2 million barrels a day to support prices.
Saudi Arabia, the de facto leader of OPEC, said Sunday that the balance of the oil markets was far from over, as stocks were still high.
Russia also said that production cuts would remain in place until at least June.
As a result, Bernstein forecast a stock draw of 37 million barrels in the first quarter for the 36 member countries of the Organization for Economic Co-operation and Development (OECD), which includes most industrialized countries.
The International Energy Agency (IEA) said on Friday it was expecting a modest deficit on the oil markets from the second quarter of 2019.
The United States, where crude oil production has risen by about 2 million barrels a day in recent years, has played a vital role in balancing supply and demand. demand, thanks in large part to the boom in drilling shale formations on the coast.
The number of rigs destined for new oil production in the United States declined in 2019 and hit its lowest level since April 2018 last week, with 833 rigs.
However, US production of C-OUT-T-EIA crude oil again rose in early 2019, reaching a record 12.1 million barrels per day (bpd) in February, according to data from the Energy Information Administration. (EIA).
Production has since declined to 12 million barrels per day, but it still makes America the world's largest producer of crude oil.
Report by Henning Gloystein; edited by Richard Pullin
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