Published: Wed, July 04, 2018
Money | By Armando Alvarado

Oil rises on Libya force majeure, but demand slowdown holds back market

Oil rises on Libya force majeure, but demand slowdown holds back market

Oil prices climbed down from their 3 ½ year high to reach US$73 per barrel, with Brent trading at US$76.96 Tuesday afternoon. President Trump has always been critical of OPEC and rising oil prices, and the agreement from Saudi Arabia has a broad impact on global oil supply while other nations, like Venezuela, cope with falling production.

Saudi Arabia has been pumping around 10 million bpd in recent months and sources close to its oil policy have said it could raise output to 11 million bpd.

Trump tweeted on Saturday that he had requested an output increase from Saudi Arabia to balance out Iran's contribution and turmoil in Venezuela.

"Don't forget the one negative to the Iran deal is that you lose a lot of oil, and they got to make up for it".

Oil is surging as the US pushes allies to end imports of Iranian crude, as global supply disruptions persist and American crude inventories are already at the lowest since January.

At their meeting in Vienna last month, OPEC countries and key ally Russian Federation said they will raise production by a million barrels per day, but analysts are concerned it may not be enough for oil prices to spiral out of control, at least until new US shale production comes on stream. "He has agreed", Trump tweeted.

HTC will lay off 1,500 in its Taiwan operations
HTC has officially put out the information saying that it would let go of 1,500 employees from its manufacturing unit in Taiwan . By the way, 1,500 of the 6,450 or so current jobs is close to 25 percent, which qualifies as a massive employment cutback.

Trump's move comes as the world suddenly finds itself dangerously short of meeting rising global demand that's set to hit 100 million barrels per day by the fourth quarter, compared to 98.7 million during the same period a year ago.

"We're not granting waivers", the official said. The global benchmark traded at a $5.64 premium to WTI for September.

An agency report on Tuesday indicated, however, that despite the U.S. push on Saudi Arabia, futures in NY jumped as much as 1.7 per cent.

The president also had tough words for other U.S. allies.

The Trump administration is pushing countries to cut all imports of Iranian oil from November when the United States re-imposes sanctions against Tehran, after Trump withdrew from the 2015 nuclear deal agreed between Iran and six major powers, against the advice of allies in Europe and elsewhere.

The UAE's energy minister and current OPEC president for 2018, Suhail Al-Mazrouei, on Tuesday said that the UAE stood ready to help tackle any potential oil shortage, while underlining that OPEC will continue to adhere to "overall conformity levels" for the rest of 2018, according to Reuters report.

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