Although EIA forecasts that oil prices will remain lower than during most of 2018, the forecast includes some increase in prices from December 2018 levels in early 2019 in order to keep up with demand growth and support the increased need for global oil inventories to maintain five-year average levels of demand cover.
Ashton Whiteley analysts say prices have been negatively impacted by disappointing trade data out of China which revealed a decline in imports and exports as the trade tariffs imposed by the United States during the course of previous year begin to take their toll.
Crude oil output of the Organization of the Petroleum Exporting Countries (OPEC) dropped by 590 kb/d in December to reach 32.39 mb/d and non-OPEC supply fell by 360 kb/d in December to 61.2 mb/d, according to the IEA's Oil Market Report.
Brent for March settlement advanced 2.5% to close at $62.70 the London-based ICE Futures Europe exchange The global benchmark crude traded at an $8.66 premium to WTI for March.
"Between spring 2018 and November Iran's crude exports fell from about 2.5 million b/d to less than 1.3 million b/d and the Trump Administration wants to reduce them to zero".
Since the EIA report is positively correlated with API, the market will be trading crude oil with a bullish sentiment. The price has been on two-way action driven by news influenced momentum but support gained from OPEC crude oil production and supply cut implementation has helped prevent any sharp downside move.
Defense White Paper Stops Calling N.Korea 'the Enemy'
The last time Mr Kim went to the USA , his letter to Mr Trump appeared to have helped get the Singapore summit back on track. At the request of the North Korean side, the group has chose to postpone the event to February 12-13, it said.
In a sign that global supply could tighten further, a US -based think-tank predicted that the United States may grant waivers on sanctions it imposed on importing Iranian oil to fewer countries.
"You can't justify oil prices at these levels".
The data, however, showed that the annualized fourth-quarter growth rate slowed to 6.4 percent, as expected.
Skyrocketing US crude output, which neared a record 12 million bpd in early January, is fuelling some of the concern among traders and investors that growth in global supply this year will outpace demand.
This marks an increase from the end of 2018, but overall it will remain lower than the 2018 average of $71 per barrel, the EIA said. After closing out 2018 in free-fall, USA crude prices have rebounded more than 18 percent to start this year. This year, America's crude oil production is expected to average 12.1 million bpd in 2019, while crude production in 2020 is seen averaging 12.9 million bpd, with most of the growth coming from the Permian.