Oil steady, supported by US stocks and supply concerns

23 September, 2018, 19:00 | Author: Natasha Holloway
  • On Tuesday Saudi Arabia said it was willing to see prices climb above $80 a barrel

The president also suggested it was unfair that OPEC raises prices when, "We protect the countries of the Middle East, they would not be safe for very long without us".

The US counts Saudi Arabia, OPEC's de facto leader, as a key ally and will be keen not to see a price surge ahead of the US midterm elections November 6, with Trump's Republican Party at risk of losing control of Congress.

Trump's criticism was directed primarily at Saudi Arabia, Opec's biggest producer, after the kingdom said it could tolerate oil prices above $80, at least in the short term, said Commerzbank commodities analyst Carsten Fritsch.

The report said that Saudi Arabia wants oil to stay between Dollars 70 and USD 80 a barrel for now, as the world's biggest crude exporter strikes a balance between maximizing revenue and keeping a lid on prices until USA congressional elections.

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading higher early Thursday, continuing to be supported by lower U.S. crude oil inventories and global supply worries. USA light crude was down 9 cents at $71.03 a barrel after rising almost 2 percent on Wednesday.

"The last thing that he is going to want to have happen is diesel prices and oil prices hitting highs when people are going to the voting booth", Zahir said. Meanwhile, an industry report Tuesday showed US crude stockpiles increased 1.25 million barrels last week, defying expectations for a decline ahead of government data.

Flood Waters Kill Two Horry County Detainees
The women had been involuntarily committed by a physician, authorities said. 'Just like you, we have questions we want answered'. The South Carolina Department of Transportation has closed a portion of Interstate 95 in both directions in the Pee Dee.

Prices dipped as low at $70 in London in August, but have since risen as American sanctions began to significantly curb Iran's oil exports.

Despite the president's intervention, market sentiment remained fairly bullish with many traders and analysts expecting Brent to move above $80 soon. The commercial crude inventory is down about 3% compared with the five-year average for this time of year. Gasoline inventories fell by more than 1.7M barrels last week.

"Whether or not this (price) development was justified, it is a supply-side development and the market has reacted to it", PVM Oil Associates strategist Tamas Varga said, Reuters reported.

US sanctions affecting Iran's oil exports come into force on November 4.

Mostly, however, it's the uncertainty over how easily other producers can compensate for any lost supply.

One glaring absence from the Algiers proceedings will be Iranian oil minister Bijan Zanganeh, who has railed against Saudi Arabia and Russian Federation increasing production as Iran's market share is threatened.



Jose Mourinho warns Man United fans about ‘difficult’ season
There was not enough creativity, movement or dynamism", he added. He has to become a player Man United can rely on at all times. We started poorly, we started both halves at a low intensity.

Standout Iowa State golfer murdered in random act of violence
He also was trying to hide a deep cut on his left hand, which he tried to bury in the ground. Huff said no one else had been charged, but that the investigation was ongoing.

Aguero set for decade at City after signing 1-year extension
Some Manchester City players apologised for the defeat to Lyon but Guardiola insisted his players had nothing to say sorry for. Manchester police said they had opened a hate crime investigation into the incident. "We can't forget what we've done".

Governor blames 'colonialism' for US's poor Puerto Rico hurricane response
Ricardo Rosselló accepted the findings of a George Washington University study that attributed 2,975 deaths to Maria. President Donald Trump previously tweeted that "3000 people did not die in the two hurricanes that hit Puerto Rico".

Cristiano Ronaldo likely to get 1-game ban face Manchester United
They are able to extend Ronaldo's suspension if they feel he committed a "serious offence", though this would be open to appeal. So, Young Boys can breathe a sigh of relief but it seems Ronaldo will be returning to Old Trafford after all.

Trump urged Spain to ‘build a wall’ across Sahara, says minister
The enclaves, which lie on the Mediterranean coast, have always been popular transit points for sub-Saharan African migrants. Add Donald Trump as an interest to stay up to date on the latest Donald Trump news, video, and analysis from ABC News.

Meghan Markle's Mom Doria Attends Kensington Palace Event Celebrating Duchess's Cookbook Release
With proceeds from the cookbook, the kitchen aims to have its doors open up to seven days per week. She was accompanied by her husband Prince Harry and her mother Doria Ragland .

Wiggins responds to Jimmy Butler, Stephen Jackson
Butler is downplaying his fractured relationship with Towns as a reason for wanting a trade, league sources said . Now he also must balance the possibility of Butler leaving, and how the franchise should best handle that.

Roseanne Barr reveals how her character dies on The Conners
Of course, Barr could be wrong, or ABC could still change the storyline before The Conners premiere on October 16. Oz show, Roseanne reiterated that she is not a racist and that the tweet was misinterpreted.

What’s at stake in the North-South Korea summit?
The South Korean president has also said he will focus on easing military tensions and promoting talks on denuclearisation. The peninsula has remained split since the 1950-53 Korean War, which ended in an armistice rather than a peace treaty.