2019.03.0705:22:00UTC+00Oil Prices Rise As OPEC Cuts And US Sanctions Support

Oil prices nudged higher on Thursday, drawing support from OPEC-led output cuts and the U.S. sanctions against Venezuela and Iran.

Global benchmark Brent crude jumped over 1 percent to $66.67 per barrel while U.S. West Texas Intermediate (WTI) crude oil futures were up 0.75 percent at $56.64 per barrel.

Prices remain supported by OPEC-led efforts to tighten the market. OPEC and its partners have been cutting output by around 1.2 million barrels per day (bpd) since the start of the year, a strategy aimed at rebalancing the market as quickly as possible.

The U.S. sanctions on Iran and Venezuela coupled with unrest in Libya that had prompted the closure of El Sharara, are also giving additional tailwind to prices.

Venezuela's state-run oil firm PDVSA this week declared a maritime emergency after Bernhard Schulte Shipmanagement (BSM) disclosed plans to return 10 tankers over unpaid fees.

Despite all these factors, the market is still pretty well supplied thanks to surging U.S. production.

The Energy Information on Wednesday reported that U.S. crude oil stockpiles rose by 7.1 million barrels last week, well above the average climb of 1.9 million barrels expected by analysts.

The Organization for Economic Co-Operation & Development (OECD) has cut forecasts for the global economy in 2019 and 2020, warning that trade disputes and uncertainty over Brexit would hit world commerce and businesses.