ibusinesslines.com
ibusinesslines.com December 19, 2018


Crude prices slump as global economy crashes

28 October 2018, 10:01 | Kelvin Horton

Crude prices slump as global economy crashes

Crude prices slump as global economy crashes

Brent crude futures were down 51 cents, or 0.7 percent, at $76.38 a barrel by 0331 GMT. However, there has also been new concern among market players: that global economic growth may be slowing down and will continue to slow down, ultimately hurting oil demand.

However, there is an important distinction when it comes to Saudi Arabia.

Saudi Energy Minister Khalid al-Falih said this week, according to Russian news agency TASS, that the country would bump up its production to 11 million barrels a day to cool off the oil market, although some oil observers wonder if the kingdom would be able to fulfill this promise.

Oil futures rose mid-week as the focus returned to looming United States sanctions on oil exporter Iran, helping prices recover from a two-month low earlier in the week.


However, earlier this week prices fell sharply after the top Saudi energy official said the country had ramped up production and was working with both OPEC and non-OPEC members to make sure to cover any supply disruption. USA crude oil production C-OUT-T-EIA has risen steadily over the past decade and hit a record high of 11.2 million barrels per day (bpd) this month. Russian Federation is already pumping 10.8 million barrels a day of crude, a level unseen since the Soviet Union. The sanctions will take effect from 4 November.

"If equities are selling off, the public is taking a risk off stance, pulling in their wallets and moving from a risk-on, the global economic expansion, to a risk-off, for potential global economic contraction", John Thorpe, a commodity broker at Los Angeles-based Cannon Trading, told UPI via email.

The ISPR I, in partnership with ADNOC of Abu Dhabi, is for holding 5.33 million metric tons of crude oil, on a seven-year contract basis. You even have a report that the Chinese Government is telling China oil companies to stop buying oil from Iran, at least temporarily, because they want to use it as a barging chip in US trade negotiations with the United States. Cumulatively the value of oil imports from Iran between April and September 2018 more than doubled to Dollars 7.74 billion from USD 3.84 billion in the corresponding period past year.

U.S. crude CLc1 was down 60 cents, or 0.9 per cent, at $66.73. In recent weeks, the oil market has carefully watched growing strains in the U.S. -Saudi relationship over the killing of Saudi journalist Jamal Khashoggi. At long term with sufficient oil supply by major oil exporter Iran's role in world oil market may decrease, Iran needs to keep its share in regional and world oil market.



Other News

Trending Now

Moreland drills three-run homer in Game 4
Then came the piercing blow, from Pearce again: a two-out, bases-clearing, three-run double from off Kenta Maeda for an 8-4 lead. But veteran second baseman Ian Kinsler's wide throw on a two-out grounder by Yasiel Puig let Los Angeles score the tying run.

Late, late show: Dodgers beat Red Sox in longest Series game
Muncy drew a leadoff walk and tagged up when Nunez tumbled into the third base stands after catching Cody Bellinger's pop foul. While it suggested the rookie right-hander wasn't long for the game, Buehler settled in.

Palestinians slam Oman over Netanyahu visit
This was the first visit by Netanyahu to any Gulf state and the first such visit by any Israeli premier for more than two decades. The visit was announced on Omani state television, which aired video footage of the aging ruler greeting his Israeli counterpart.

How 'Today' Covered Megyn Kelly's NBC Departure in Wake of Blackface Comments
She would postpone her jury service, so that it would not appear that she was ducking the limelight, three of the people said. W&G star Debra Messing felt compelled to assure fans, "Honestly I didn't know it was [Megyn Kelly] until that morning".

South Florida man arrested in connection with suspected explosive packages
The first bomb discovered was delivered Monday to the suburban NY compound of Soros, a major contributor to Democratic causes. A person has been arrested in connection with a mail-bombing campaign aimed at Trump critics, United States officials say.

Sporting Lisbon v Arsenal talking points
Sporting endured a hard summer as 11 players left the club following an attack on the training ground by disgruntled supporters. Goalkeeper Petr Cech started the campaign as first choice despite the summer signing of Germany global Bernd Leno.

Pakistan beat Australia by 66 runs in first T20
For the tourists, Ashton Agar and Nathan-Coulter Nile were the ones to resuscitate the innings with a partnership of 34 of them. Striving at 133 for eight, Hasan Ali's struck 14 of three balls to guide Pakistan post 155 at the halfway stage.