Added to this is the continual growth in USA shale oil production.
NEW YORK, March 2 (Reuters) - Oil prices rose on Friday as Wall Street stocks bounced off session lows, but benchmark crude futures posted their first weekly decline in three weeks on fears US plans to impose tariffs on steel and aluminium could squeeze economic growth and jitters about rising USA crude production.
West Texas Intermediate for April delivery was down 10 cents at $60.89 a barrel on the New York Mercantile Exchange at 3:34 pm in Singapore.
Brent crude was down 40 cents, or 0.6 percent, at $66.23 a barrel. Global oil prices could recover at around US$70 per barrel following the cuts.
The United States will overtake Russian Federation as the world's biggest oil producer by 2019, International Energy Agency (IEA) Executive Director Fatih Birol said on Tuesday.
While the week-long Lunar New Year holiday this month disrupted business activity, traders also pointed to tougher pollution rules that curtailed factory output.
In Japan, the world's third-largest economy, industrial output in January took its biggest tumble since a devastating quake in March 2011, highlighting a weakening in demand and a build-up of inventory.
Meanwhile for OPEC, total output last month declined to a 10-month low, mainly due to lower production from Venezuela and an outage in the United Arab Emirates.
This is a 180-degree turn for the United States and the impacts are being felt around the world.
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Data on Tuesday from the American Petroleum Institute showed that crude inventories rose by 933,000 barrels in the week to February 23, to 421.2 million barrels.
Refinery crude runs dropped by 209,000 barrels per day (bpd), API data showed, implying a drop in demand for feedstock crude.
Data on the website of the Energy and Mineral Resources Ministry indicated, Thursday, that the OPEC has succeeded in trimming oil production by 1.8 million barrels per day since 2016. USA data released Wednesday showing crude stockpiles at their highest level in about two months "was a bit of a disappointment".
Oil cartel Opec will hold a dinner on Monday in Houston with U.S. shale firms, the latest sign of the producer group widening talks about how best to tame a global oil glut.
Fawad said the market has been ignoring "good compliance with the production cuts by OPEC and non-OPEC countries".
"The rise in total US commercial stocks coupled with a new high in domestic crude production made for a soft backdrop", Stephen Brennock, analyst at London brokerage PVM Oil Associates, said in a note.
On Tuesday, International Energy Agency Executive Director Fatih Birol said the United States will likely overtake Russian Federation as the world's biggest oil producer by 2019.
A day after the American Petroleum Institute gave oil bulls a cold shower by reporting a 933,000-barrel build in crude oil inventories on top of a gasoline build, the Energy Information Administration deepened the gloom by reporting a 3-million-barrel build for the week to February 23.