UPDATE 10-Oil prices dip; slow progress in trade talks counters OPEC cuts

Reuters

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    * U.S.-China talks face March 1 deadline of re-imposed
tariffs
    * OPEC+ cuts aim to balance supply and demand
    * Oil market to reach balance in Q1 -UAE energy minister

 (Updates with settlement prices, adds market activity,
commentary)
    By Stephanie Kelly
    NEW YORK, Feb 11 (Reuters) - Oil prices edged lower on
Monday as worries surrounding the resumption of U.S.-China trade
talks overshadowed support from OPEC-led supply restraint.
    Brent crude  LCOc1  futures lost 59 cents, or 0.95 percent,
to settle at $61.51 a barrel.
    U.S. West Texas Intermediate (WTI) crude  CLc1  fell 31
cents, or 0.59 percent, to settle at $52.41 a barrel.
    Trade talks between the United States and China resumed with
working-level discussions before high-level discussions later in
the week.  urn:newsml:reuters.com:*:nL3N20614C
    Beijing, however, expressed anger at a U.S. Navy mission
through the disputed South China Sea. This cast a shadow as the
two countries try to reach a deal before the March 1 deadline
when U.S. tariffs on $200 billion worth of Chinese imports are
scheduled to increase to 25 percent from 10 percent.
    On Thursday, U.S. President Donald Trump said he did not
plan to meet with Chinese President Xi Jinping before the March
1 deadline, dampening hopes of a quick trade pact.  urn:newsml:reuters.com:*:nL3N206035
 urn:newsml:reuters.com:*:nL1N2030ZH
    Escalating U.S.-China trade tensions have cost both
countries billions of dollars and disrupted global trade and
business flows, roiling financial markets.
    "There's a lot of uncertainty about what's going on with
this trade war, whether they're going to get anything done,"
said Phil Flynn, oil analyst at Price Futures Group in Chicago.
"You've got concerns about slowing growth."
    A rising U.S. dollar also weighed on oil futures. A stronger
dollar makes greenback-denominated commodities more expensive
for holders of other currencies.
    "Until some dollar weakness begins to develop, the complex
could have difficulty advancing much this week even allowing for
some supportive elements out of an upcoming slew of energy
releases," Jim Ritterbusch, president of Ritterbusch and
Associates, said in a note.
    Still, oil prices have been buoyed this year by output curbs
from the Organization of the Petroleum Exporting Countries and
its allies, including Russia, a group known as OPEC+.
    The deal, effective from January, aims to cut 1.2 million
barrels per day until the end of June to forestall a supply
overhang. Suhail Al Mazrouei, the energy minister of the United
Arab Emirates, said on Monday the oil market should achieve this
balance in the first quarter of 2019.  urn:newsml:reuters.com:*:nL5N2062KS
    OPEC and its allies meet on April 17 and 18 in Vienna to
review the agreement, but a draft cooperation charter seen by
Reuters fell short of a new formal alliance among the producers.
 urn:newsml:reuters.com:*:nL5N2063SK
    U.S. sanctions on Venezuela, along with older sanctions on
fellow OPEC member Iran, have also prevented crude prices from
falling further.  urn:newsml:reuters.com:*:nL1N2031Z8
    Venezuela President Nicolas Maduro has sought OPEC support
against the sanctions, citing their impact on oil prices and
potential risks for other members of the producer group.
 urn:newsml:reuters.com:*:nL5N20649T
    The country also wants to double its oil sales to India and
is open to barter payment arrangements with the world's
third-biggest crude consumer, Venezuelan Oil Minister Manuel
Quevedo said on Monday.  urn:newsml:reuters.com:*:nL3N2062D1

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GRAPHIC: U.S. oil production & drilling levels    https://tmsnrt.rs/2Tm4u4I
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 (Reporting by Stephanie Kelly;
Additional reporting by Noah Browning in London and Henning
Gloystein in Singapore; Editing by Andrea Ricci and Lisa
Shumaker)
 ((Stephanie.Kelly@thomsonreuters.com; 646-223-4471; Reuters
Messaging: stephanie.kelly.thomsonreuters.com@reuters.net))

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