Oil prices rise as focus returns to supply concerns

Strength in Oil ETFs Won’t Last if OPEC Has Any Say

Brent crude was up 8 cents, or 0.1 percent, at $78.26 a barrel by 0338 GMT, after falling 2 percent on Thursday.

In a move strongly opposed by Iran, OPEC had agreed in June to boost crude output by about a million barrels a day, AFP said, as the threat of sanctions stoked supply concerns on world markets.

Oil prices broke the $80 a barrel barrier yesterday as the storm, along with Donald Trump's sanctions on Iran, bumped prices.

Supply concerns were stoked by data showing United States crude production fell by 100,000 barrels per day (bpd) to 10.9 million bpd last week as the industry faced pipeline capacity constraints.

Crude oil prices fell Thursday, slipping back from four-month highs as investors focused on emerging market crises and trade disputes possibly denting demand.

Ardebili also accused Saudi Arabia and Russian Federation of taking the market "hostage" through increased production and said that OPEC's responsibility is to restore market balance, not to boycott its founding members.

Iran is now OPEC's third-largest producer, but the USA wants to cut its production down to zero by November as part of sanctions imposed on the country.

Still, supply concerns are supported by data showing that USA crude production fell by 100,000 bpd to 10.9 million barrels per day last week as the industry faces pipeline capacity constraints. Despite the rise, oils prices fell again on Thursday.

Moreover, despite the increased August output, OPEC is also issuing a warning on the demand side of the oil markets equation.

Demand for oil grew more slowly in the second quarter but will continue to rise this year and in 2019, the group said. Here are the production numbers of the OPEC countries in the past two months.

"Regime change in Iran is not American policy, but what we want is massive change in the regime's behavior", Bolton said, adding, "We are going to do other things to put pressure on Iran as well, beyond economic sanctions".

India bought about 658,000 barrel of oil per day between April-August, while the projected cuts will reduce those shipments to 360,000-370,000 barrels per day, Reuters reports. Russian Federation produced 11.247 million bpd that month, a post-Soviet era record high.

Now the monitoring committee overseeing the OPEC/non-OPEC supply accord will meet on September 23 in Algiers (Algeria) to examine market fundamentals and potentially make recommendations on the output policy.

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