Published: Fri, November 02, 2018
Markets | By Erika Turner

More Crude Losses as Bulls Exit the Market

More Crude Losses as Bulls Exit the Market

Benchmark Brent crude oil fell $1.05 a barrel to a low of $76.29 before recovering slightly to around $76.44, down 90 cents, by 1205 GMT.

Jahangiri further emphasized that the USA efforts to encourage Saudi Arabia to replace Iran's oil in markets were in vain, stressing that oil prices would nonetheless rise if Iranian supplies were to be cut off.

Data from Refinitiv Eikon showed that the three countries produced 33 million barrels of oil a day for the first time in September, an increase of 10million bpd since the start of the decade.

US West Texas Intermediate (WTI) crude futures were firmer, however, at $67.16 a barrel, up 12c from their last settlement.

Oil has been caught in the global financial market slump this month, with equities under pressure from the trade fight between the world's two largest economies.

Iran says the USA can never prevent it from selling crude oil to global clients, stressing that no other supplier can substitute the kind of oil it provides to overseas markets.

"Many countries have shown readiness to do business with Iran" despite United States sanction threats, Zarif was quoted as saying, Xinhua news agency reported.

Crude output from the world's top three producers, Russia, the United States and Saudi Arabia now jointly account for a third of global oil supplies.

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He pointed to "weakening global economic growth, the ongoing US-China trade war, monetary policy tightening, fears of a hard Brexit (and) Italy's budget woes" as main reasons for the sell-offs. "The second one is global economic growth momentum slowing down", IEA chief Fatih Birol told an energy conference in Singapore.

"The fact that this price weakness is developing just ahead of the official kickoff of the Iranian oil sanctions suggests an amply supplied market in which additional supply was brought to market well in advance of a likely acceleration in Iranian export decline", Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.

In May, before President Trump withdrew the USA from the nuclear deal, Iran was exporting roughly 2.5 million barrels per day (bpd).

The U.S. dollar index .DXY also rose, supported by robust U.S. consumer spending data.

On top of demand concerns, all eyes are on any impact from Iranian sanctions that are set to kick in on November 4, with many taking a view that Saudi Arabia and OPEC will pump enough to fill any supply shortages.

Fund managers have cut their bullish positions in crude futures and options for four weeks in a row to their lowest since July 2017, as the demand outlook grows more uncertain.

USA curbs on Iran's vital oil exports are set to come into force on Nov 4.

This story has not been edited by Firstpost staff and is generated by auto-feed.

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