Oil prices fall amid surprise growth in USA crude stocks

Cornelia Mascio
Settembre 19, 2018

U.S. West Texas Intermediate (WTI) crude CLc1 fell 0.20 percent, or 14 cents, to $69.71 a barrel.

" Oil markets are in a tug of war as Iran sanctions will continue to provide near-term support, while discussions around global demand in the wake of this morning's tariffs and speculation of further OPEC supply increases should temper upside ambitions", Oanda head of trading Stephen Innes said.

Reuters reported on September 5 that Saudi Arabia wanted oil to stay between $70 and $80 to keep a balance between maximising revenue and keeping a lid on prices until US congressional elections. "I think that is going to remain the theme for the next six weeks until the next round of US sanctions against Iran kick off".

Saudi Arabia has mentioned several times recently that they have no desire to push oil prices over $80/barrel, a move higher may be unavoidable as USA sanctions on Iran are set to come into effect beginning November 4th.

Crude inventories fell 2.1 million barrels last week to 394.1 million barrels, the lowest level since February 2015, EIA data showed.

The worldwide benchmark for crude prices, Brent crude futures, fell 29 cents or 0.37 percent to $77.76 per barrel.

Brent crude futures (LCOc1) were down 15 cents at $78.88 a barrel by 1116 GMT, having gained 1.3 percent on Tuesday following media reports that Saudi Arabia, the world's largest oil exporter, was comfortable with prices above $80.

On Monday, Russian Energy Minister Alexander Novak said all possible scenarios for oil output could be discussed at a meeting of OPEC and non-OPEC states in Algeria this month.

Crude oil prices peaked at a near-term high of with WTI tapping into 70.40 on Tuesday, but was unable to make a challenge of last week's high of 71.25 after United States oil inventories showed yet another surprise build-up in their barrel counts yesterday. Russia, the world's largest oil producer, and other producers in OPEC have kept in place a supply agreement to maintain prices while at the same time providing enough oil to the market.

US crude stockpiles rose by 1.2 million barrels to 397.1 million in the week to September 14, the American Petroleum Institute said.

U.S. President Donald Trump is likely to announce new tariffs on about $200 billion on Chinese imports as early yesterday, a senior administration official told Reuters on Saturday.

In a move heavily opposed by Iran, OPEC and other oil producers including Russian Federation agreed in June to boost crude output by around a million barrels a day, reversing course after supply cuts that had cleared a global glut and boosted prices.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE