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United States oil exports set to hit all-time high under Trump

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U.S. oil rig count and oil production

USA crude inventories have also been climbing.

With market sentiment swayed greatly by rumour and innuendo, and with a long history of hawkish world leaders causing trepidation among investors, presumably oil's potential to break out will be further compromised by increasing tensions between Iran and the US president Donald Trump.

Brent crude LCOc1 settled up $1.22 a barrel at $56.80. Moreover, Russia announced that they will gradually lower their production according to the production deal agreement between 24 countries.

This week, the U.S. Energy Information Administration reported total November crude oil production at 8.9 million barrels per day, an increase of 100,000 bpd from the previous month.

"It was a very bearish report on several fronts, from the large across-the-board builds in the major categories, and the continued decline in refinery runs", said John Kilduff, partner at energy hedge fund Again Capital LLC in NY.

For the last four weeks, stockpiles grew by more than 14 million barrels. The larger-than expected build initially exacerbated concerns that efforts to cut production globally may not be sufficient to reduce a supply glut. That energized bulls to push crude upward, he said.

The United States, the world's biggest oil consumer, could export at least 800,000 barrels per day (bpd), the analysts said.

Feb 1 Russian Federation has cut its oil and gas condensate production in January by around 100,000 barrels per day (bpd), as concluded from the data provided to Reuters by two industry sources on Wednesday. However, Russia has said its planned output reduction would be gradual.

Azerbaijan has presented data on daily oil output in January 2017 to OPEC within the implementation of a term of the Vienna agreement on reducing output, the country's Energy Ministry told Trend Feb. 2. Nevertheless, prices were prevented from falling further by indications that for the most part, OPEC nations are adhering to the imposed production cutbacks agreed upon at the end of 2016.

The increase in Asian deliveries contrasts with OPEC's global cut of over 1 million bpd in January, surprising market watchers with a compliance rate of over 80 percent.

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