ibusinesslines.com
ibusinesslines.com November 17, 2018


Oil nears $80 a barrel as concern grows over global supply

16 September 2018, 10:54 | Kelvin Horton

Oil nears $80 a barrel as concern grows over global supply

Oil nears $80 a barrel as concern grows over global supply

USA light crude settled down $1.78, or 2.5 per cent, at $68.59 a barrel.

The IEA also said that higher output from OPEC managed to more than offset seasonal declines from non-OPEC members.

Weaker quiz in Organization for Economic Cooperation and Pattern (OECD) individuals in Europe and Asia, as effectively as higher gas prices within the US, place some downward stress on the tempo of quiz yelp, while shakiness in emerging markets over alternate disputes and weakened currencies pose a risk to quiz outlook for 2019.

OPEC in its latest monthly report believes global supplies will be just fine moving forward: it stated that oil supply this year will grow by 2.02 million barrels per day (bpd) despite making a downward revision of 64,000 bpd from its last report; next year, non-OPEC oil supply is expected to grow by 2.15 million bpd, a minor upward revision of 17,000 bpd.

Benchmark Brent crude oil LCOc1 was up 50 cents at $77.87 a barrel.

"Oil prices jumped overnight as American Petroleum Institute inventory data showed a large drawdown in inventories", said William O'Loughlin, investment analyst at Australia's Rivkin Securities.

Also supporting prices were supply concerns surrounding USA sanctions on Iran.

Oil prices rose on Tuesday as U.S. sanctions squeezed Iranian crude exports, tightening global supply despite efforts by Washington to get other producers to increase output.

Further oil price increases could trigger a slowdown in domestic or global economic growth, which could further complicate the U.S.' Iran policy and Trump's domestic political situation.


Futures in NY dropped as much as 0.8 per cent after two days of gains. Mexico accounts for more than half of this total and continues to be the largest single-destination concentration for any US petroleum export.

Nigerian crude oil differentials were largely unchanged yesterday, after a series of offers from Shell for October-loading cargoes drew no buyers, and even BP, which has been an active bidder this week, showed unwillingness to pay higher prices.

EIA forecast total global liquid fuels inventories to decrease by 0.4 million barrels per day in 2018 compared with 2017, followed by an increase of 0.1 million barrels per day in 2019.

USA light crude fell $1.15 to a low of $69.22 a barrel and was last at $69.50, down 87 cents.

"We are entering a very crucial period for the oil market".

Despite fear of disruptions to global oil supplies and curbs on production, OPEC sees global oil supplies as sufficient - it's demand people should be worrying about.

US production has returned to 2014 boom levels, but the energy agency said USA output will grow more slowly next year due to bottlenecks in getting oil to markets. In August, OPEC's second-largest producer saw near-record production at 4.65 million bpd.

While Iran's liquefied petroleum gas (LPG) exports in August jumped to the highest in almost two years, mostly thanks to China which imposed tariffs on U.S. LPG, Tehran lost customers in East Africa-Kenya and Tanzania have stopped importing LPG from Iran due to the sanctions, according to Platts tracking data and sources.



Other News

Trending Now

Hurricane Florence from space: photos of the hurricane showed in the NASA
The landfall location is expected to be between Wilmington and Morehead City, North Carolina. The Triad has around a 50% chance of having sustained Tropical Storm force winds.

Verizon iPhone Xs Deal Teased as Best Offer Ever
This week Apple announced the latest incarnations of its iPhone: the iPhone XS , the iPhone XS Max , and the iPhone XR . For instance - AT&T will lease you the iPhone XS for less than $34 each month for tenure of 30 months.

Trump calls North Carolina officials, offers help for Florence
Parts of the Carolinas could see 50 cm to 76 cm, with isolated areas getting 101 cm, over seven days along the coast. Gradual weakening is expected throughout the day Friday, with significant weakening predicted over the weekend.

Sec. of Defense James Mattis Refutes Allegations in Woodward Book
Eric joined the Trump Family Good Time Happy Hour to attack Daddy's enemies: anyone who's a Democrat and journalist Bob Woodward . His new book, " Fear ", the Pulitzer Prize-winning reporter's account of the White House's inner workings.

Putin vows to strengthen Russian army as he inspects war games
The official noted that 91 observers from 57 countries, NATO Military Liaison Mission and EU Delegation to Russian Federation attend the large-scaled exercises.

People along North Carolina coast share Snapchats of Hurricane Florence
Forecasters said the onslaught could last for days, leaving a wide area under water from both heavy downpours and rising seas. The Wilmington airport had a wind gust clocked at 105 miles per hour (169 kph), the highest since Hurricane Helene in 1958.

Tropical Storm Florence crawls inland as it batters North and SC
The White House on Saturday said President Donald Trump had approved making federal funding available in some counties. U.S. media later said a man in Lenoir County died after heavy winds knocked him down as he tried to check on his dogs.