Oil prices edge up on hopes for US-China trade breakthrough

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Brent crude futures were up $0.77 at $63.19 a barrel by 1225 GMT while United States crude oil futures rose $0.53 to $53.63 a barrel.

The global oil market remains well supplied, the International Energy Agency said in its monthly market report on Wednesday, and output would still likely outstrip demand this year, despite OPEC's efforts and USA sanctions on Iran and Venezuela.

Nigeria's crude oil production including condensate has taken a dip, falling to 1.999 million barrels per day in January from 2.081 million bpd in December, figures from the Ministry of Petroleum Resources has revealed.

Prices of the American reference for the sweet light crude oil are prolonging the recovery on Wednesday, trading at shouting distance from the $54.00 mark per barrel ahead of the EIA report.

Futures in NY closed up 1.5 percent, reaching the highest point in a week.

A U.S. House of Representatives committee approved the bill known as No Oil Producing and Exporting Cartels Act, or NOPEC, last week.

OPEC cut output by nearly 800,000 bpd in January to 30.81m bpd. Energy Minister Khalid al-Falih on Tuesday told the Financial Times production would fall below 10 million bpd in March, more than half a million bpd below the target it agreed to as part of a global deal to limit supply.

Venezuela's diminished importance in the global oil market and as a supplier to the United States has emboldened the US administration to take a tough approach in attempting to oust the government of Nicolas Maduro.

"In terms of crude oil quantity, markets may be able to adjust after initial logistical dislocations (from Venezuela sanctions)", the Paris-based IEA said.

USA crude oil production remained at a record of 11.9 million barrels per day (bpd).

But climbing US oil stockpiles weighed on prices. On Monday, April Brent crude futures dropped around one percent, reaching minimum since January 29.

In the USA, oil inventories climbed 3.63 million barrels, while supplies of gasoline, heating oil and other fuels added about 3 million barrels more, according to weekly data from the Energy Information Administration.

The IEA raised its estimate of growth in crude supply from outside the Organization of the Petroleum Exporting Countries to 1.8 million bpd in 2019, from 1.6 million bpd previously. Analysts polled by Reuters forecast an increase of 2.7 million barrels.

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