Factors beyond producers’ control are impacting oil market - OPEC

Brent crude futures were down 21 cents at $84.79 a barrel by 0434 GMT after a 1.3 percent gain on Tuesday

USA oil prices further dived 3.01 percent Thursday amid a rise in petroleum stockpiles and a deep fall of stock markets.

The December ICE Brent crude futures were dropped by 90 cents per barrel i.e.by 1.07% at $83.26 per barrel, whereas, the NYMEX light sweet crude contract was dropped by 63 cents per barrel i.e.by 0.85% at $73.71 per barrel.

Meanwhile, EIA expected West Texas Intermediate (WTI) crude oil prices will average about 6 dollars a barrel, lower than Brent prices in 2018 and in 2019.

In the U.S. Gulf of Mexico, producers had cut output by 40 percent on Thursday due to Hurricane Michael, even as some operators began returning crews to offshore platforms.

"The oil market mood is exceptionally bullish, with fears growing that the US demands for an Iran oil embargo could cause a significant supply shortfall", Julius Baer commodities research analyst Carsten Menke said.

Several of the world's biggest trading houses expect USA sanctions on Iran to keep oil prices high, with crude staying above $65 and possibly breaking above $100 in the medium term.

India, a major buyer, has ordered Iranian oil for November, although New Delhi does not yet know whether it will receive such a waiver.

OPEC on Thursday lowered its estimate for the global oil demand next year due to the slower economic growth and U.S. shale output growth.

In its closely watched Monthly Oil Market Report published on Thursday, OPEC revised down its global oil demand growth to 1.54 million bpd this year, down by 80,000 bpd from the estimate in the September report.

That is down from at least 2.5 million bpd in April, before U.S. President Donald Trump in May withdrew the United States from a 2015 nuclear deal with Iran and re-imposed sanctions. The American Petroleum Institute reported that USA crude supplies rose 9.7 million barrels for the week ended October 5, according to sources.

Before the re-imposition of US sanctions, Iran was India's third-largest oil supplier behind Saudi Arabia and Iraq. Producers lost about 1.7 million barrels of oil through Wednesday as a result of shut-ins and the figure is expected to rise.

Crude has eased after climbing to a four-year high earlier this month.

"The enhanced volatility in the market in general is spilling over into energy, as investors are reducing risk", said Rob Thummel, managing director at Tortoise, which manages $16bn (€13.8bn) in energy-related assets.

USA light crude was up 40 cents at $74.69.

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