Oil up one percent on tightening crude supply, upbeat economic data

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West Texas Intermediate (WTI) crude rose by 46 cents or 0.4 per cent to settle at $63.84 a barrel.

Oil prices rose one per cent on Friday as involuntary supply cuts from Venezuela and Iran plus conflict in Libya supported perceptions of a tightening crude market, while upbeat Chinese economic data eased concerns about waning crude demand.

Output declines in OPEC because of the supply pact, plus the sanctions on Venezuela and Iran, have exceeded expectations.

"We believe global demand has another 10 million barrels bpd of growth, with over half from China", Bernstein Energy said in a note on Thursday. Demand for OPEC crude in 2018 averaged 31.35 million bpd.

In its April report the IEA maintained its forecast for oil demand growth in 2019 at 1.4 million barrels per day.

"Clearly, oil prices at $70/bbl for Brent, are less comfortable for consumers than they were at the start of the year and the IEA has regularly warned of the dangers of prices rising even higher".

After a production glut lead to prices dropping previous year, OPEC members and allies including Russian Federation agreed in December to trim production.

On the demand side, Chinese data showed exports rebounded last month, driving USA and euro zone bond yields to three-week highs and helping offset weaker imports and reports of another cut in German growth forecasts.

The oil cartel and its allies will meet in June to decide whether to continue withholding supply. The IEA also said that USA sanctions and power outages pushed OPEC...

Angola's oil production saw a marginal increase last March of 7000 barrels per day (bpd) to 1.454 million bpd, according to secondary sources, the Organization of Petroleum Exporting Countries (OPEC) said.

At the last OPEC meeting in Vienna, the group's members agreed to slash output by 812,000 bpd, with Russian Federation and nine other non-OPEC allies committing to a cut of 383,000 bpd for the first six months of 2019.

OPEC production meanwhile fell by 0.55 mbd in March to 30.13 mbd - a four-year low - largely due to cuts in Saudi Arabia and crisis-hit Venezuela, the IEA said.

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