Published: Sun, September 16, 2018
Money | By Armando Alvarado

Oil firm on tighter US outlook, but…

Oil firm on tighter US outlook, but…

USA crude futures were up 53 cents at $69.78 a barrel.

The 15-nation cartel's individuals agreed to originate up raising output starting in July this year to stabilize markets and offset losses in most important suppliers Iran and Venezuela, OPEC's third and sixth-greatest producers, respectively.

“In addition, there is a risk to growth from an escalation of trade disputes, ” the Paris-based agency said.

The November delivery of Brent crude opened at $79.44 per barrel at the start of Wednesday's trading on the futures market, a 0.44 per cent increase since the previous session's close.

Innes said the slight dips on Thursday came as rising refined product inventories, which the EIA also reported, "slightly dampened market overexuberance" as it indicated that US fuel demand may be weakening.

Official weekly government data will be published by the U.S. Energy Information Administration (EIA) on Wednesday.

Crude briefly pared gains after the OPEC report was released but later rallied to trade above Dollars 80 a barrel, a level reached earlier this year for the first time since 2014, supported by expectations for a further drop in Iranian exports.

"If Venezuelan and Iranian exports do continue to fall, markets could tighten and oil prices could rise without offsetting production increases from elsewhere", the IEA warned.

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The battle between the known and the unknown, between the aggressive speculators and professionals, continues on Thursday after a strong surge in prices the previous session has failed to attract enough new buyers so far today to continue the rally.

The EIA's most recent monthly export data shows the US exported 3.609 million barrels of ethanol in June, primarily to Brazil, Canada and India.

Russian energy minister Alexander Novak said global oil markets were fragile due to geopolitical risks and supply disruptions.

"We think oil market fundamentals are increasingly supportive of crude prices, at least at current levels", said Gordon Gray, HSBC's global head of oil and gas equity research.

Expect a major oil price rally in November as a direct result of sanctions on Iran, not to mention a moribund Venezuelan oil production, and United States oil reserves falling.

India's imports of the United States oil in August rose to a record 275,000 bpd, accounting for about six per cent of its overall purchases.

Outlook for growth in global oil demand for this year and 2019 remains the same, IAE said, at 1.4 million barrels per day for 2018 and increasing to 1.5 million per day in 2019.

In 2018, demand for OPEC crude is expected at 32.91 million bpd, with demand for the second half to average 33.50 million bpd, the monthly market report showed. This news was being supported by the unknown, or the compliance with the US sanctions on Iran.

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