Oil price dips as International Monetary Fund cuts growth outlook; eyes on hurricaneNaija247news

Oil price extend losses as other markets fall, stockpiles climb

Oil price extend losses as other markets fall, stockpiles climb

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.

OPEC Secretary-General, Mohammad Barkindo, said on Thursday that there are many non-fundamental factors influencing the oil market that are beyond oil producers' control.

Oil prices could fall next year as the "fear factor" that's now gripping the market subsides, Ian Taylor, chairman of the world's largest independent oil trader Vitol Group, said in an interview with Bloomberg television on Wednesday.

Reuters however reports that markets were supported as Hurricane Michael closed almost 40 percent of U.S. Gulf of Mexico oil output and U.S. sanctions restricted Iranian exports.

EIA estimated Brent crude oil spot prices averaged 79 dollars a barrel in September, up 6 dollars from August.

"So there is real commitment in the selling ... adding to the idea that we are seeing a turn in the market", he said.

Oil prices gave back early gains and turned lower on Friday after the International Energy Agency (IEA) deemed supply adequate and the outlook for demand weakening, sinking even as equities rebounded from a slump Thursday.

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Platts reported that the 33.07 million barrels in last month were the highest OPEC has manufactured since July 2017, if the Republic of Congo is not included in the list.

The tanker shipments might change weekly, but the lower volumes in the starting phase of October indicate that Iranian crude oil exports are striking and falling rapidly than the market expected just a few months ago. Under the production cuts initiated in January, Saudi Arabia's quota is 10.058 million barrels a day.

Jeremy Weir, chief executive of Trafigura, said at the Oil & Money conference in London that he would not be surprised to see oil trade at more than $100 per barrel next year.

"We are very concerned", Barkindo said when asked about spare capacity, citing a continued decline in oil industry investment resulting from a market downturn that began in 2014.

The views of market experts and observers are divided on the issue of oil business between New Delhi and Tehran.

Saudi Arabia, meanwhile, is set to deliver extra 4 million barrels of its oil to India in November, in what could be a Saudi move to replace lost Iranian barrels.

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