Oil prices looking for support as WTI tests back below $68

06 August, 2018, 11:32 | Author: Sally Reid
  • The USA through May 2018. The upward surge has stalled for the last two months. U.S. production was down 30,000 bpd in May

That's compared with a forecast for a 3-million-barrel decline in a Bloomberg survey of analysts. The actual record was a build that surprised the market.

Stocks at the key Cushing storage hub in Oklahoma fell by 1.3-million barrels, the lowest level since October 2014, according to data from the Energy Information Administration (EIA).

The question regarding Iranian oil supply now is, can the Trump Administration get everybody else except China, which has already said it won't recognize US sanctions on Iran, out of the market, according to the strategist. Higher crude output from the Saudis, along with Nigeria and Iraq, pushed up total Opec production by 300,000 barrels a day last month. "In turn, for every 1 million barrels per day imbalance, we see a price impact on Brent of around $17", they added. Iranian officials have warned their country would not easily yield to a renewed US campaign to strangle oil exports.

Light, sweet crude for September delivery fell 1.7 per cent to $67.58 a barrel on the New York Mercantile Exchange.

Fears that Chinese demand could taper fuelled the pullback on Friday after state oil major Sinopec cut its purchases of US crude. The group's 15 members, which now include Congo, collectively produced 32.6 million barrels per day.

Possible sighting of Mollie Tibbetts in Missouri
We are hopeful that she is still alive and so we will continue to think that way until told otherwise", Rahn told ABC News last week.

To be sure, production jumped from a year ago-by 13.3 percent from the 9.217 million bpd production in May last year.

The FOMC interlude was even less of an event than expected but that belies some of the headline risk creeping back into play, as the market has been waiting for a Whitehouse press release on China tariffs which has left investors to speculate if this will confirm the overnight chatter the U.S. is proceeding with United States dollars 16 bln in tariffs. Total volume traded was about 30 percent below the 100-day average. Over the past four weeks, motor gasoline supplied averaged 9.68 million barrels per day, down by 0.9 percent from the same period previous year. Over the past four weeks, jet fuel supplied averaged 1.79 million barrels per day, down by 1.7 percent from the same period a year ago.

The West Texas Intermediate (WTI) for September delivery lost 0.47 USA dollar to settle at 68.49 dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery erased 0.24 dollar to close at 73.21 dollars a barrel on the London ICE Futures Exchange.

OPEC's July output climbed as Saudi Arabia pumped near-record volumes, while Russian Federation boosted production to unprecedented levels since it joined the cartel in a coordinated cut in January 2017.

Traders are also watching rising output from OPEC and its allies following their June accord to increase supply, having faced acute pressure from the U.S. President, Donald Trump, to calm oil prices.

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