'Crucial period' for oil as Iran exports shrink: IEA

19 September, 2018, 12:43 | Author: Salvatore Jensen
  • Oil prices climb as Iran sanctions loom

The deal, in place since January 2017, has effectively lifted prices from a slump in 2015 to current levels of roughly $79 a barrel for Brent crude and $69/Bbl for U.S. West Texas Intermediate, CNBC reported.

Benchmark Brent crude futures were up $1.01 at $80.07 a barrel by 10:58 a.m. EDT (1458 GMT) after reaching $80.13 a barrel, its highest since May 22.

The falls came on the back of a potential slowdown in fuel demand growth because of trade disputes between the United States and China as well as emerging market turmoil.

"We are entering a very crucial period for the oil market", the IEA said in its latest monthly report.

The U.S. Energy Information Administration (EIA) on Tuesday cut its forecast for U.S. crude output growth in 2019, while leaving 2018 production and demand growth forecasts unchanged.

The warning by the Paris-based International Energy Agency that oil prices could scale above $80 a barrel is definitely not good news for India.

OPEC opened the flood gates this summer by increasing crude oil production by 278,000 barrels a day from July to August. In 2018, world oil demand is expected to grow by 1.62 Mmbpd, a minor downward revision from last month's projection.




Demand for oil grew more slowly in the second quarter, particularly in Europe and Asia but also because of higher gasoline prices in the USA, the energy group said.

S&P global Platts said OPEC, in a report, indicated demand for the organization's own crude oil in September will be nearly 1 million bpd more than the level produced in August.

Oil prices rose on Wednesday following a report of declines in US crude inventories and as looming sanctions against Iran raised expectations of tightening supply, while top producer Russian Federation warned of a fragile global crude market.

The EIA now predicts ethanol production will average 1.05 million barrels per day this year, falling to 1.03 million barrels per day next year.

"The American Petroleum Institute figures for the week ended September 7 showed a much larger-than-expected 8.6 million barrels and WTI reacted positively", OANDA's head of trading Stephen Innes said.

Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma, March 24, 2016.

In addition, OPEC's production also is rising. "This is a huge uncertainty on the market - how countries, which buy nearly 2 million barrels per day of Iranian oil, will act". As Florence moves closer to the southeastern coast of the USA, the storm appears likely to strengthen, forecasters said. EIA expected Brent spot prices will average 73 dollars and 74 dollars per barrel in 2018 and 2019, respectively.

Recommended:



Popular

Galaxy's Ibrahimovic scores 500th career goal
Following the goal, fans on Twitter were just as stunned as the commentary team at Ibrahimovic's incredible acrobatic effort. Click through the gallery to see where Ibrahimovic netted his 500 careers goals.

Cleveland Browns sign receiver Rod Streater | 92.3 The Fan
In that sense, the move reminds me of when the Patriots claimed wide receiver Michael Floyd on waivers in December 2016. He missed training camp to receive treatment and the Browns were cautiously optimistic he would help them this season.

Apple Releases iOS 12 With Performance Improvement, Siri Shortcuts and More
Josh Centers devoted his summer to Take Control of iOS 12 , so you can read that for the full rundown on what's new and necessary. You either manually turn it on, or schedule when you want your phone to quit begging for your attention with each new alert.

Track the Storm in North, South Carolina
In any case, it will bring heavy rain and some gusty winds to the northern Mexico, Texas, and possibly part of Louisiana coast. The NHC notes that amount of rainfall would "produce catastrophic flash flooding and prolonged significant river flooding".

Australia Warns Consumer to Cut Strawberries After Needles Found Inside Some Samples
For example, according to ABC , on Saturday a 7-year-old girl in South Australia bit into a strawberry that had a needle in it. "Police are continuing to liaise with retailers to ensure that all stock from the affected date has been removed from sale".

Liverpool appear real deal as familiar failings torment Tottenham
Liverpool boss Jurgen Klopp had been concerned about Firmino when he spoke to the media immediately after the Spurs game. But defending set-pieces is a basic requirement for a defender and they were founding wanting once again.

Hurricane Florence still poses grave threat despite weaker winds
Eudy's family has lived in New Bern since the 1850s, he said. "WE ARE COMING TO GET YOU", the city tweeted around 2 a.m. The few cars out on a main street in Wilmington had to swerve to avoid fallen trees, metal debris and power lines.

Florence kills 5, including infant, in North Carolina, officials say
Government weather satellites captured this image of Hurricane Florence shortly after its landfall September 14, 2018 . A gust of 169km/h was recorded at Wilmington airport, surpassing the power of Hurricane Fran two decades ago.

S.Africa 'close to war zone' with 57 murders a day: minister
He said the committee emphasised the need for a strategic intervention from Saps, not merely operational or tactical responses. Despite an increase in carjacking, house and business robberies, contact crimes showed a 1.9% dip in the 2017-18 year.

Jeff Bezos, world’s richest man, calls Trump’s attacks on media ‘dangerous’
Bernie Sanders, I-Vt., has held Bezos up as an example of a leader of a company that does not pay its workers enough. Citing the Amazon mantra of customer obsession, Bezos said in a tweet here: "The child will be the customer".