0449 GMT May 20, 2019
US West Texas Intermediate (WTI) crude oil futures hit 2019 highs of $56.39 per barrel shortly after 0300 GMT on Wednesday, up 30 cents, or 0.5 percent, from their last settlement, Reuters reported.
International Brent crude futures were at $66.58 per barrel, up 13 cents, or 0.2 percent, from their last close and not far off their 2019 high of $66.83 per barrel from Monday.
Oil prices were supported by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC).
OPEC-member and top crude exporter Saudi Arabia is expected to reduce shipments of light crude oil to Asia in March as part of the effort to tighten markets.
OPEC as well as some non-affiliated producers such as Russia agreed late last year to cut output by 1.2 million barrels per day (mbd) to prevent a large supply overhang from swelling.
"We have lowered Saudi crude oil output in line with announcements ... (and) are now assuming that Saudi Arabia will produce in the first three quarters of 2019 less than the 10.31 mbd target it agreed to at the December 7 OPEC, non-OPEC meeting," French bank BNP Paribas said in a note.
Because of the cuts, BNP said it expected oil prices "to rally through Q3 2019", with Brent to average $73 per barrel by then and WTI to average $66.
Another key oil price driver has been US sanctions on oil exporters Iran and Venezuela.
Despite the sanctions, Iran's crude exports were higher than expected in January, averaging around 1.25 mbd, according to Refinitiv ship tracking data.
Standing against the supply cuts and sanctions is US crude output, which soared by more than 2 mbd in 2018 to a record 11.9 mbd, thanks to booming shale oil production, which the Energy Information Administration on Tuesday said was expected to keep rising.
BNP Paribas said surging US output would feed into lower oil prices towards the end of the year, with Brent to dip to an average of $67 a barrel by the fourth quarter and WTI to average $61.
"US oil production growth, driven by shale, will be increasingly exported in greater volumes to international markets while the global economy is expected to witness a synchronized slowdown in growth," the bank said.