Oil hits 2019 high near $64

LONDON, Feb 04 (Reuters): Oil hit a two-month high close to $64 a barrel on Monday as OPEC-led supply cuts and US sanctions against Venezuela's petroleum industry offset forecasts of weaker demand and an economic slowdown.

The Organisation of the Petroleum Exporting Countries and its allies began a new round of supply cuts in January. These curbs, led by Saudi Arabia, have been compounded by involuntary losses that the Venezuelan sanctions could deepen.

Brent crude, the global benchmark, hit $63.63 a barrel, the highest since Dec. 7, and was up 66 cents at $63.41 as of 1040 GMT.

US crude hit a 2019 high of $55.75 and was later up 33 cents at $55.59.

"You have the sanctions on Venezuela, on top of the reduced supply from Saudi Arabia," said Olivier Jakob, oil analyst at Petromatrix. "There's no sign of overhang in the crude oil markets."

OPEC supply fell in January by the largest amount in two years, a Reuters survey last week found. That offset limited compliance with the output-cutting deal so far by non-OPEC Russia.

The US sanctions on Venezuela will limit oil transactions between Venezuela and other countries and are similar to those imposed on Iran last year, some analysts said after examining details announced by the government.