Crude oil futures fall on low demand

Energy Minister Prince Abdulaziz bin Salman speaks during a panel discussion at the 24th World Energy Congre

"International trade relations have further deteriorated in the past few weeks but USA and Chinese officials announced that they would resume trade negotiations in early October", the Paris-based IEA said in its latest monthly report.

He is due to attend an OPEC ministers meeting on Thursday when the cartel will review its production cut arrangement with several non-OPEC states, notably Russian Federation, which appears to have provided some support for prices.

Oil prices tumbled more than 2 per cent on Wednesday after a report that U.S. President Donald Trump was considering easing sanctions on Iran, which could boost global crude supply at a time of lingering worries about energy demand.

Top exporter Saudi Arabia told OPEC that the Kingdom raised August output by just over 200,000 bpd to 9.789 million bpd.

The Saudis reclaimed the top exporter's spot in July and August as hurricanes disrupted US production and the trade dispute "made it more hard for shale shipments to find markets", the IEA said.

"Every country counts regardless of its size. every country should live up to its commitment", Prince Abdulaziz bin Salman, the Saudi energy minister, said. OPEC raised its non-OPEC supply estimate for 2019 by 10,000 barrels a day to 1.99 million barrels, based on increased production in Russia, Kazakhstan, Australia and Canada more than offsetting a downward revision of 65,000 barrels a day in US supply growth, from 1.87 million barrels a day to 1.80 million barrels.

Lipow Oil Associates President Andy Lipow on the outlook for oil prices.

"Very important that OPEC increase the flow of Oil".

The concessions also preceded a planned meeting in coming days aimed at defusing the long-running trade row between the world's two largest economies. "Thank you!" Trump tweeted back in March. "All are in agreement".

In its September report, OPEC noted that slower economic growth would hamper demand for oil in the next year.

"Nevertheless, this is expected to be outpaced by the strong growth in non-OPEC supply".

An oil well owned an operated by Apache Corporation in the Permian Basin are viewed on February 5, 2015 in Garden City, Texas. While that should have boosted prices, the market fell instead on worries that OPEC, which accounts for about 40% of world oil supply, could again be faced with a global glut like a few years ago.

Related:

Comments


Other news