Oil prices turn positive as US crude inventories fall

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Brent crude was up 53 cents at $76.41 a barrel by 10:52 a.m. EDT (1552 GMT).

The deal, which is due to run out at the end of 2018, has succeeded in boosting oil prices above $70 a barrel from below $30 a barrel in early 2016. United States light crude was 40 cents lower at $65.96. "Put the exports of crude on top of that, and it's just a really bullish report".

IEA's scenario showed that by the end of next year output from these two countries could be 1.5 million bpd lower than now, amid USA sanctions against Iran and the production collapse in Venezuela. "It seems like we need nearly every barrel of that to keep up with this refining demand".

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Russia's production was 11.1 million barrels a day in June, exceeding its quota, according to sources familiar with the matter.

Donald Trump renewed his Twitter assault on OPEC, pushing the case for lower oil prices a week before the cartel meets to set production policy.

The benchmark price of crude has surged from around $50 a barrel last summer to within a breath of $80 a barrel a few weeks ago. Unity within OPEC has been strained, as some members such as Iran have pumped greater supply into the market. Moscow's pledge in the deal is to shave off 300,000 bpd from the October 2016 level, which was the country's highest monthly production in nearly 30 years-11.247 million bpd. After landing Wednesday morning, Trump fired off tweets on various subjects, including the summit. However, its longer-term outlook suggested "prices are unlikely to increase as sharply as they did from mid-2017 onwards and thus the dampening effect on demand will be reduced".

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Rising US stocks are in part a result of the surge in US crude oil production, which has jumped by nearly a third in the last two years to a record 10.8 million barrels per day (bpd).

"However, even if the Iran/Venezuela supply gap is plugged, the market will be finely balanced next year, and vulnerable to prices rising higher in the event of further disruption", the IEA said.

Fund manager Pierre Andurand at Andurand Capital was bullish.

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Global economic health is important to future oil demand and while the agency sees a solid global economy they are cautions about continued higher oil prices and trade disruptions, both of which could dent global economic growth.