Oil prices were steady on Feb. 11 as support from OPEC-led supply restraint was countered by an uptick in U.S. drilling and concerns about demand due to the slow progress in U.S.-Chinese trade talks.
Benchmark Brent oil was little changed, up 3 cents at $62.13 a barrel at 0945 GMT. U.S. West Texas Intermediate (WTI) crude slipped 27 cent to $52.45.
"Oil prices are still trying to figure out what lead to follow. On the one hand, there is the OPEC+ cut story, now coupled with increasing issues around Venezuelan supply", Vienna-based consultancy JBC Energy said.
"At the same time, it has to be argued that a lot of the economic data that has been released over the last few days has really not been too encouraging, and U.S.-Chinese trade talks are also seemingly not progressing very fast."
Energy firms in the United States last week increased the number of oil rigs operating for the second time in three weeks, a weekly report by Baker Hughes said on Feb. 8.
Companies added seven oil rigs in the week to Feb. 8, bringing the total to 854, pointing to a further rise in U.S. crude production, which already stands at a record 11.9 MMbb/d.
WTI prices were also weighed down by the closure of a 120,000-bbl/dcrude distillation unit (CDU) at Phillips 66's Wood River, Ill., refinery following a fire on Feb. 10.
OPEC and its allies, including Russia, have reined in output to prevent a supply glut.
The deal, effective from January, aims to cut 1.2 MMbbl/d until the end of June, in a move producers and many analysts expect to help balance supply and demand in 2019.
OPEC and its allies meet on April 17 and 18 in Vienna to review the agreement.
U.S. sanctions on Venezuela, along with older sanctions on fellow OPEC member Iran, have also prevented crude prices from falling further.
But economic concerns still weigh on crude prices.
Trade talks between Washington and Beijing resume this week with a delegation of U.S. officials traveling to China for the next round of negotiations. The U.S has threatened to increase tariffs already imposed on goods from China on March 1 if the trade talks do not produce an agreement.
Los Angeles Mayor Eric Garcetti said Feb. 11 the city is abandoning a plan to spend billions of dollars rebuilding three natural gas power plants along the coast.
Oil steadied on Feb. 7 as growing expectations that global supply could fall significantly short of demand this year lent support, offsetting the negative impact of a rise in U.S. inventories.
OPEC cut its oil forecast for 2019 world economic growth by 0.2 percentage point to 3.3% and highlighted a range of headwinds such as a slowdown in global trade.