OIL PRICE: ABOVE $73

REUTERS - Oil prices were steady on Friday, supported by traders placing new hedges in the futures market in anticipation of a decline in U.S. crude inventories, but held back from advancing by the prospect of rising global supplies.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $68.87 per barrel at 0647 GMT, down 9 cents from their last settlement.

Brent crude futures LCOc1 were at $73.40 per barrel, down 5 cents from their last close.

Overall U.S. crude oil inventories actually rose by 3.8 million barrels last week to 408.74 million barrels , according to data from the Energy Information Administration (EIA), however stocks at the key Cushing storage hub  in Oklahoma fell by 1.3 million barrels, the EIA data showed. 

"Hedges (are) thought to be a factor in oil prices being well bid," said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore.

"There's increasing chatter about ... Cushing inventories (being) down ... This primary U.S. oil hub's inventory now sits at the lowest levels since 2014," he said.

ANZ bank said on Friday in a note the drop in Cushing inventories were a driver for rising crude oil prices "amid signs that last week's (overall) build in inventories won't last very long."

Even with last week's rise, overall U.S. crude inventories are below the 5-year average of around 420 million barrels.

BEARISH FACTORS

There were also factors holding oil markets in check.

WTI is heading for a roughly flat week after four weekly falls, while Brent is on track to post a fourth week of declines in five, set for a drop of 1.4 percent.

Analysts said the outlook beyond the short-term was turning bearish.

"Bulls are fighting a losing battle ... Brent oil may fall to $67 per barrel," said Reuters technical commodities analyst Wang Tao.

Russian oil output rose by 150,000 barrels per day (bpd) in July from a month earlier, to 11.21 million bpd, energy ministry data showed on Thursday.

Output by top exporter Saudi Arabia has also risen recently, to around 11 million bpd, and U.S. production  is around that level as well.

Reacting to rising supplies, Saudi Aramco cut its September price for its Arab Light grade for Asian customers by $0.70 a barrel versus August to a premium of $1.20 a barrel to the Oman/Dubai average, it said on Thursday.

Saudi Arabia, Russia, Kuwait and the United Arab Emirates have increased production to help to compensate for an anticipated shortfall in Iranian crude supplies once planned U.S. sanctions take effect later this year.

But a complete halt to Iranian supplies looks unlikely with Bloomberg reporting on Friday that China, Iran's biggest customer, has rejected a U.S. request to cut imports from the OPEC member.

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Earlier: 

2018, August, 1, 09:40:00 OIL PRICE: NEAR $74 YET REUTERS - Brent spot crude oil futures dropped 30 cents, or 0.4 percent, to $73.91 a barrel by 0435 GMT, adding to a 1.8 percent loss in the previous session. U.S. crude futures were down 38 cents, or 0.6 percent, at $68.38 a barrel, having dropped nearly 2 percent on Tuesday.

2018, July, 30, 13:55:00 OIL PRICE: NEAR $75 YET REUTERS - October Brent crude futures were last up 36 cents at $75.12 a barrel by 0902 GMT. The September contract expires on Tuesday. U.S. crude futures were up 78 cents at $69.47 a barrel.

2018, July, 27, 12:53:57 OIL PRICE: ABOVE $74 YET REUTERS - Brent futures were down 5 cents at $74.49 a barrel by 0319 GMT, after gaining 0.8 percent on Thursday. They are heading for a near 2 percent gain this week, the first weekly increase in four. U.S. West Texas Intermediate futures were 5 cents lower, at $69.56, after rising nearly 0.5 percent in the previous session. The contract is heading for a 1.3 percent weekly loss, a fourth week of declines.

2018, July, 25, 10:20:00 OIL PRICE: NEAR $74 AGAIN REUTERS - Brent crude was up 54 cents, or 0.7 percent, at $73.98 a barrel by 0318 GMT. The global benchmark settled 38 cents higher at $73.44 a barrel on Tuesday, after climbing to as high as $74. U.S. West Texas Intermediate rose 24 cents, or 0.4 percent, to $68.76, having settled the previous session up 63 cents, or nearly 1 percent.

2018, July, 25, 10:10:00 ROSNEFT: OIL PRICE $75 PLATTS - "Our own budget is based on a price of $63/b. Today we see that prices are around $75/b, I think that prices will be at around this level -- $75, or a maximum of $80/b," Sechin said when asked about his expectations for price levels by the end of 2018.

2018, July, 25, 09:45:00 THE DIFFICULT IRANIAN SANCTIONS OGJ - “Russia already has improved its relations with Iran. Given its foreign policy stance toward the US, this could grow if it believes it would undermine the US position. Russia is taking a long-term view. It sees several obstacles, which it is determined to overcome.”

2018, July, 23, 13:55:00 OIL PRICE: NEAR $74 REUTERS - Brent crude oil LCOc1 rose $1.19 a barrel to a high of $74.26 before easing to around $74.05 by 1030 GMT. U.S. light crude CLc1 was up 70 cents at $68.96 a barrel.