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U.S. West Texas Intermediate crude futures were up $1.16, or 1.8% at $64.70 U.S. a barrel.

The price of United States crude oil has broken decisively above resistance from a downward-sloping trendline joining the highs touched on February 2 and February 26, suggesting that further gains are in prospect.

The compliance figures reflect both high adherence by top exporter Saudi Arabia and other Gulf OPEC countries, as well as an involuntary slide in production in Venezuela, whose output is dropping amid an economic crisis.

Brent sweet crude futures were at 67.66 dollars per barrel.

Both benchmarks posted a daily gain of more than three percent, and reached their highest level since February 2.

"A few things happened", said Jim Ritterbusch, president of Ritterbusch and Associates, referring to the EIA data. USA crude production that has boomed to a record as well as rising American inventories are prompting speculation that OPEC and its allies will have to extend output cuts into 2019 to reach the group's goal of reducing inventories to their five-year average. "And exports were up slightly", he said.

Looming over oil markets has been surging US crude production C-OUT-T-EIA, which has risen by more than a fifth since mid-2016, to 10.38 million bpd, overtaking top exporter Saudi Arabia and putting the United States within reach of Russia's 11 million bpd.

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Oil also got a boost after the U.S. Federal Reserve raised interest rates on Wednesday and forecast at least two more hikes for 2018.

A weaker greenback makes imports of dollar-denominated crude cheaper for countries using other currencies at home, potentially spurring demand.

On a simple supply versus demand basis, however, global oil markets are facing the risk of returning into oversupply after being in a slight deficit for much of a year ago.

The bullish report was somewhat tempered by US crude production, which climbed to a fresh record of 10.4 million barrels per day in the week.

Should the United States reimpose sanctions against Iran, energy consultancy FGE said that would likely result in a 250,000 to 500,000 barrels per day (bpd) drop in its exports by year-end.

"So far, the market is sort of ignoring the increase in production", said Ritterbusch.


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