LONDON - Brent crude fell on Friday, weighed down by surging U.S. supply and concerns of a global economic slowdown, but falling OPEC supplies put a floor under prices.
International Brent crude futures were at $66.08 per barrel at 1037 GMT, down 23 cents from Thursday’s settlement.
U.S. West Texas Intermediate (WTI) crude oil futures were at $57.24 per barrel, up 2 cents.
The U.S. Energy Department said on Thursday it was offering up to 6 million barrels of crude from national emergency reserves to raise funds to modernize U.S. strategic oil reserves.
Canada’s main oil-producing province of Alberta on Thursday raised the amount of crude that companies can produce in April to 3.66 million barrels per day, an increase of 100,000 bpd from the limit imposed in January.
But those moves were partially offset by reductions elsewhere.
In Venezuela, oil exports have plunged by 40 percent to around 920,000 barrels per day (bpd) since the U.S. government slapped sanctions on its petroleum industry on Jan. 28.
The drop comes as the Organization of the Petroleum Exporting Countries (OPEC), of which Venezuela is a founding member, leads efforts to withhold around 1.2 million bpd of supply to prop up prices. Venezuela is exempt from the cuts.
“OPEC and its 10 allies are doing their job and this time they are stubborn,” London-based brokerage PVM said in a note, referring to the supply restrictions which have been in place since the start of the year.
On the demand side, analysts expect global fuel demand to slow this year amid a broad economic slowdown.
China’s February factory activity fell for a third month as the world’s second-largest economy continued to struggle with weak export orders, a private survey showed on Friday.
The weakness is also being felt across the wider region. South Korea’s exports contracted at their steepest pace in nearly three years in February as demand from China cooled further.
Despite this, fuel consumption, especially in Asia’s developing economies which are key drivers of global oil demand, is so far holding up.
India’s diesel consumption, for example, is expected to rise to a record this year amid economic growth of around 7 percent.
