Oil Falls on Rising OPEC Production

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However, the fortunes of crude oil traders may be boosted with introduction of the InterContinental Exchange (ICE) platform that would be formally operational from September 17.

John Kemp, market analyst for Reuters, views 2019 is a radically different light: on Wednesday he stated in an opinion piece that "Slower growth in USA production, when combined with strong demand, production problems in Venezuela and other countries, and the re-imposition of sanctions on Iran, is enough to tighten the global market in late 2019".

The latest forecast by IEA is that production by non-OPEC members will grow by over 2 million barrels daily during 2018 and by 1.8 million bpd during 2019, due to the non-stop growth in record output by the U.S.

Iran exports crude oil, condensates, and fuel oil, while it imports gasoline and gasoil.

Oil traded below $70 a barrel as investors assessed whether other Organization of the Petroleum Exporting Countries (Opec) members can fill the supply gap created by U.S. sanctions on Iran and economic collapse in Venezuela.

Iranian fuel oil exports to Singapore collapsed in August, a source in the Middle East fuel oil market told Platts, adding that fuel oil exports to Fujairah and Singapore are expected to slow down.

"We can see that the pricing situation today depends not just on the supply/demand balance or the general economic situation but also on the uncertainty that we observe today in the global markets: the trade wars, the sanctions that the USA pursues", Novak told CNBC.

Iran imports gasoline because insufficient refining capacity and the previous round sanctions had prevented it from expanding its refinery base.

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

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. Articles appear on euronews.com for a limited time. So the price impact of the sanctions could be twice as large as in 2012, Fattouh and Economou argue.

Traders said USA markets were lifted by a tightening outlook for fuel markets in the coming months.

In 2017, production averaged 1.04 million barrels per day.

That month Russian Federation produced 11.247 million bpd, a post-Soviet Union record-high.

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.

The storm could also affect the Colonial Pipeline, which transports oil through North and SC with the latter said to be in the direct path of the storm's eye.

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