Home » Money

Oil falls below $80 on rising USA stockpiles

22 October, 2018, 13:22 | Author: Kristi Dunn
  • A general view of the 4th Iranian Petroleum and Energy Club Congress & Exhibition held in Tehran on Oct. 16 2018

The most-active December Brent crude futures contract was last up 23 cents at $81.02 a barrel at 1407 GMT, off the high for the day at $81.90 but still within sight of Tuesday's four-year high of $82.55.

Reports say Iran had previously stored oil at Dalian during the last round of sanctions in 2014 that was later sold to buyers in South Korea and India.

But spare capacity remains at “precariously low” levels and could remain below 1 million barrels a day through the fourth quarter, depending on the effectiveness of USA sanctions on Iranian crude and refined export products, he said.

During an energy conference on October 3 in Moscow, Saudi Arabia energy minister Khalid Al-Falih revealed that his country is producing 10.7 million barrels of oil a day - a rate that is near the country's output record set almost two years ago.

Oil prices and calendar spreads have softened significantly this month as traders became more confident about the availability of supplies towards the end of the year and into early 2019.

"We need to see signs loss of Iranian barrels will be replaced by other producers", said Gene McGillian, vice president of market research for Tradition Energy in Stamford, Connecticut.

Oil traded near the lowest level in a month after a bigger-than-expected gain in American stockpiles overshadowed tensions between the USA and Saudi Arabia over a missing critic of the kingdom.

Arsenal should make Ramsey captain, not let him leave, says Wilshere
I want every player to stay OK, with the mentality to prepare, to play and be together to win. "He's a great guy to have around". One name that has cropped up rather predictably is Arsenal's soon-to-be-out-of-contract midfielder Aaron Ramsey .

Western pressure mounted on Riyadh to provide answers, but comments by President Donald Trump suggested that White House may not take additional actions against the Saudis, specifically after Saudi Arabia said it will conduct a probe.

While Trump has repeatedly demanded that OPEC take action to lower oil prices, he referred to Saudi Arabia as its ally and reiterated to reporters on Wednesday that Crown Prince Mohammed bin Salman's government agreed to buy $110 billion in USA weaponry past year.

According to US State Department officials, "there are no blanket waivers that will be issued for any one country", and any waiver under CAATSA "would require, among other things, countries to significantly reduce their reliance on Russian arms". us crude was down 64 cents at $69.11.

There is no way to wield the oil weapon, which would not shake the foundations of the U.S. -Saudi alliance on which the kingdom's defense depends, leaving it vulnerable to regional rivals, including Iran. Saudi Aramco will buy a stake in an upcoming Chinese mega refinery, its latest investment in the world's biggest oil market as it pursues a strategy of securing avenues for oil sales.

The oil weapon does not work, which is why Saudi Arabia is unlikely to employ it in the dispute over the disappearance of Washington Post journalist Jamal Khashoggi.

In this context, the production cuts and embargo made an already tight market worse, sent oil prices surging, and produced a huge, short-term revenue windfall for Saudi Arabia and other oil producers.

Recommended:



Popular

Your Arsenal is not back yet, boss Unai Emery tells Gunners fans
With Sokratis a doubt, we could see Rob Holding lining up alongside Shkodran Mustafi in central defence . Pierre-Emerick Aubameyang has been involved in 19 goals in his last 21 Premier League appearances.

Juventus star Emre Can set to miss Old Trafford trip
Ahead of the game, right back Ashley Young urged his team to go on the offensive right from the start. Anthony Martial was arguably Manchester United's best player as he bagged a brace.

Maurizio Sarri admits Chelsea in wrong while José Mourinho accepts apology
Sarri was furious at dropping two points, accusing his players of trying to match United at their own game . The respective footage has emerged on the Twitter account Sky Sports Premier League .

Saudi Arabia claims missing journalist Jamal Khashoggi was killed 'in a fight'
As far as the United States response to his killing is concerned, President Donald Trump has said it's a good first step. They also expressed their condolences to Khashoggi's family and friends, "whose fears have now been sadly proven true".

The release clause that could see Neymar leave PSG
But a video posted on Neymar's Instagram story showed him scratching his head and laughing as he called front pages dedicated to his future "fake news".

NOAA Predicts Warmer Winter for Much of the US
It also said that wetter-than-average conditions are likely across the southern part of the USA , and up into the Mid-Atlantic. Little precipitation is expected in southern California, Arizona, new Mexico, in the southern areas of Utah and Colorado.

Pompeo in Riyadh, But No Information Disclosed about Missing Saudi Journalist's Fate
France, Germany and Britain on Sunday expressed concerns over the case, calling for "a credible investigation" into the incident. Secretary of state Mike Pompeo will visit Saudi Arabia and Turkey because of the situation with the journalist Jamal Hackage.

Huawei unveils Mate 20 X with 7.2-inch OLED display for gaming
The Mate 20 and Mate 20 Pro announced today feature that weird camera arrangement we've seen leaked over the past couple of weeks. It looks like, Huawei Mate 20 Pro will take over Google Pixel 3 XL to claim the title of the best camera smartphone of 2018.

Manny Pacquiao Claims Floyd Mayweather’s Next Fight To Happen On This Date
Khabib brings 2.5 billion Muslims around the world, some of the richest countries in the world, and they're behind him. Of course, Mayweather wants any potential fight to go down in the boxing ring rather than the octagon.

Boston Red Sox Stifle Houston Astros' Bats, Return To The World Series
Kimbrel was just a step or two behind Price in the postseason worry-ometer, but he was fine, despite issuing a walk. Such an effort clearly failed past year when Houston faced the New York Yankees .