Oil Eases Off Four-Year High

Oil eases below four-year highs U.S. inventory rise expected

Crude seesawed near a four-year high as Iran's dwindling presence in global markets overshadowed the steepest increase in USA oil stockpiles since March 2017. In addition, U.S. shale has a much longer journey to India than crude oil from the Middle East.

Brent crude, the global benchmark, was 0.9% lower at $85.52 a barrel. On Wednesday, Brent hit its highest price since late 2014, at $86.74.

US West Texas Intermediate (WTI) crude futures were up just 1c at $75.24 a barrel.

On Wednesday, Brent climbed to the most technically overbought level since February 2012, while WTI inched higher to the most overbought since January.

On Thursday, both contracts' RSI retreated to below 70.

"It's our objective that there be no waivers from the sanctions, that exports of Iranian oil and gas drop to zero", he said.

According to Petronet, the oil price information system of Korea National Oil Corporation, Korea imported about 7.3 million barrels of US crude oil in August, much more than the two million barrels it imported from Iran in the same period.

"While upside price risks will prevail for now, fundamental data outside of Iran has not turned bullish in our view", Goldman said in a note to clients.

While the rising trend continued in early 2018, reaching as high as 2.8 million bpd in April, Iran's oil sales overseas have seen considerable decreases, falling 2.01 million bpd and 1.31 million bpd by September 13 this year, according to Bloomberg data.

The Kingdom had not decided yet whether it wants to take its capacity up to 13 million barrels per day (bpd) or keep it at current levels.

Rising oil prices and global trade worries are pressuring emerging economies, International Energy Agency Executive Director Fatih Birol told Reuters.

India is facing an "economic crisis" due to its huge oil imports, two local TV channels cited Transport Minister Nitin Gadkari as saying. India also has been hurt by a slide in the rupee against the dollar. But even a short-term jump could make those options more expensive, and holders could sell them for a profit.

Iranian Minister of Petroleum Bijan Zangeneh said on Tuesday Iran will go full-throttle to maintain its market share as he blamed Trump for the surge in oil prices.

In November, a second batch of potentially more damaging sanctions will be re-imposed on Iran's oil and shipping sectors as well as its central bank. "By that time all the bullish news will be in the market".

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