Oil fell further from 2019 highs on March 22, but was set for a third straight week of gains due to supply cuts led by producer club OPEC and by U.S. sanctions on Iran and Venezuela.

Brent crude futures were at $67.39 per barrel at 0942 GMT, 47 cents below their last close. Brent hit a four-month high of $68.69 on March 21. The benchmark has risen by just under a third since the beginning of January, when OPEC started to cut production.

U.S. West Texas Intermediate (WTI) futures were at $59.53 per barrel, down 45 cents from their last settlement. WTI marked a 2019 peak in the previous session at $60.39.

Both contracts were on course for their third consecutive week of increase.

"For all the recent chatter of positive vibes and faithful oil bulls, the $70 barrier has so far proved a tough nut to crack for the European benchmark," PVM analysts wrote.

"A sense of hesitancy has taken hold across the energy complex. Market players are waiting for a bullish catalyst to spark a decisive upside breakout. The most obvious contender would be a conclusive trade agreement between the U.S. and China."

As economic growth has slowed across Asia, Europe and North America, potentially denting fuel consumption, no breakthrough has emerged in the trade stand-off between Washington and Beijing, at least before meetings scheduled on March 28-29.

Three in four Japanese companies expect U.S.-China trade frictions to last until at least late this year, a Reuters poll found.

A jump of more than 2 million barrels per day (MMbbl/d) in U.S. crude oil production  since early 2018 to a record 12.1 MMbbl/d has made the U.S. the world's biggest producer, ahead of Russia and Saudi Arabia.

This has resulted in increasing exports, which have doubled over the past year to more than 3 MMbbl/d. The International Energy Agency estimated that the United States would become a net crude oil exporter by 2021.

U.S. energy firms last week reduced the number of oil rigs operating for a fourth week in a row, with drilling slowing to its lowest in nearly a year, according to Baker Hughes. Fresh data is due on today.

Still, oil prices this year have been propped up by supply cuts by OPEC and allies such as Russia.

Beyond OPEC, oil prices have been boosted by U.S. sanctions against OPEC members Iran and Venezuela.

 

Onshore