Brent and WTI Prices Dip in Wednesday Trading

Oil prices slipped away from 2019 highs on Wednesday, with surging US supply and slowing economic growth tempering upward pressure from supply cuts led by producer club OPEC and from Washington’s sanctions on Iran and Venezuela.
WTI crude oil futures hit 2019 highs of $56.39 per barrel on Wednesday but had slipped back to $56.16 per barrel, which was slightly above their last settlement, CNBC reported. 
International Brent crude futures were at $66.41 per barrel, down 4 cents from their last close, though still not far off their 2019 high of $66.83 per barrel, hit on Monday. 
Oil prices have been supported by supply cuts led by the Organization of the Petroleum Exporting Countries. 
OPEC-member and top crude exporter Saudi Arabia is expected to reduce shipments of light crude oil to Asia in March as part of the effort to tighten markets. 
OPEC as well as some non-affiliated producers such as Russia agreed late last year to cut output by 1.2 million barrels per day to prevent a large supply overhang from swelling. 
“We have lowered Saudi crude oil output in line with announcements...and are now assuming that Saudi Arabia will produce in the first three quarters of 2019 less than the 10.31 million bpd target it agreed to at the Dec. 7 OPEC, non-OPEC meeting,” French bank BNP Paribas said in a note. 
Because of the cuts, BNP said it expected oil prices “to rally through Q3 2019”, with Brent to average $73 per barrel by then and WTI to average $66. 
Another key oil price driver has been the US sanctions on oil exporters Iran and Venezuela.