OIL PRICE: ABOVE $61

REUTERS - Oil prices rose on Wednesday as concerns about supply disruptions following U.S. sanctions on Venezuela's oil industry outweighed pressure from a darkening outlook for the global economy.

U.S. West Texas Intermediate (WTI) crude futures were at $53.43 per barrel at 0644 GMT, up 12 cents, or 0.2 percent, above their last settlement.

International Brent crude oil futures rose 21 cents, or 0.3 percent, to $61.53 per barrel.

Washington on Monday announced export sanctions against state-owned oil firm Petroleos de Venezuela SA (PDVSA), limiting transactions between U.S. companies that do business with Venezuela's state-owned oil firm PDVSA.

"The sanctions so far have been mostly disruptive for refiners on the U.S. Gulf Coast, who are being forced to seek alternative heavy crude supplies, and have stepped up purchases from Canada," said Vandana Hari of Vanda Insights, an energy consultancy.

The sanctions aim to freeze sale proceeds from PDVSA's exports of roughly 500,000 barrels per day (bpd) of crude oil to the United States.

Although the move pushed up oil prices, markets appeared relatively relaxed as the sanctions only affect Venezuelan supply to the United States.

"The (Venezuelan) export volumes will not be eliminated from the market, but rather rerouted to other countries," said Paola Rodriguez-Masiu, an analyst at consultancy Rystad Energy.

With the United States dropping out as a customer for Venezuelan oil, she added that "China and India ... will be able to pick up these oil volumes at great discounts."

Despite this, some analysts said non-U.S. oil trading firms with operations in the United States may still avoid dealing with Venezuelan oil.

The Schork Report, a daily oil trading publication, said on Wednesday that many "international oil traders ... have significant trading operations in the U.S. ... At least in the short-term, these traders will undoubtedly quit buying from Venezuela until such a time that they are assured that they are not running afoul of U.S. sanctions."

In a potential sign of mounting pressure, Venezuelan President Nicolas Maduro told Russian state news agency RIA on Wednesday he is ready for talks with the opposition, with the participation of international mediators.

Overall, traders said the U.S. sanctions against Venezuela will have a limited impact on global oil markets, which remain well supplied.

Even before the lastest sanctions, Venezuela's economic turmoil has pulled down its crude oil production from a peak of around 2.5 million bpd before 2016 to little more than 1 million bpd now.

U.S. crude oil output, by contrast, jumped by more than 2 million bpd in 2018 alone, to a record 11.9 million bpd.

Beyond Venezuela, analysts pointed to economic weakness as countering supply-side troubles.

"Pulling (oil prices) in the opposite direction are heightened concerns about global growth, particularly that of China," said Ole Hansen, head of commodity strategy at Denmark's Saxo Bank.

Global economic growth is slowing amid a trade dispute between the United States and China, the world's two biggest economies.

Officials from Washington and Beijing are set to launch a new round of trade talks on Wednesday aimed at resolving their disputes amid which both sides have slapped hefty import tariffs on each other's goods.

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Earlier: 

2019, January, 28, 10:35:00 OIL PRICE: NEAR $61 REUTERS - U.S. crude oil futures were at $53.13 per barrel at 0543 GMT, down 56 cents, or 1 percent, from their last settlement. International Brent crude oil futures were at $61.03 a barrel, down 61 cents, or 1 percent.

2019, January, 28, 10:25:00 OIL UNDER SIEGE REUTERS - “There is no doubt - and there is a consensus coming here in various meetings in Davos - that our industry is literally under siege and the future of oil is at stake,” said Mohammed Barkindo, secretary-general of oil producer group OPEC.

2019, January, 28, 10:20:00 CHINA FOR VENEZUELA: $50 BLN REUTERS - China has lent over $50 billion to Venezuela through oil-for-loan agreements over the past decade, securing energy supplies for its fast-growing economy.

2019, January, 25, 09:20:00 OIL PRICE: NOT ABOVE $62 AGAIN REUTERS - International Brent crude oil futures were at $61.89 a barrel at 0246 GMT, 80 cents, or 1.3 percent, above their last close. U.S. West Texas Intermediate (WTI) crude futures were at $53.90 per barrel, up 77 cents, or 1.5 percent.

2019, January, 23, 11:45:00 OIL PRICE: NOT ABOVE $62 REUTERS - International Brent crude oil futures were at $61.85 per barrel at 0624 GMT, up 35 cents, or 0.6 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $53.26 per barrel, up 25 cents, or 0.5 percent.

2019, January, 21, 11:55:00 OIL PRICE: NEAR $63 REUTERS - International Brent crude oil futures LCOc1 were at $62.75 per barrel at 0747 GMT, up 5 cents, or 0.1 percent, from their last close. Brent earlier rose above $63 for the first time in 2019. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $53.87 a barrel, up 7 cents, or 0.1 percent. WTI earlier advanced above $54 a barrel for the first time this year.

2019, January, 21, 11:50:00 OPEC CONFORMITY LEVEL 98% OPEC - The JMMC calls on all participating countries of the ‘Declaration of Cooperation’ to redouble their efforts in the full and timely implementation of the supply adjustments to ensure that the oil market remains in balance in 2019.