Oil falls as OPEC output rises, more production planned

The Organization of the Petroleum Exporting Countries agreed with Russian Federation and other oil-producing allies on June 23 to raise output from July, with Saudi Arabia pledging a "measurable" supply boost, but giving no specific numbers.

Earlier this year, to the chagrin of European partners, Trump said he would pull the United States out of the Iran nuclear agreement secured by world powers.

US crude stockpiles are forecast to have declined 5 million barrels last week, according to a Bloomberg survey ahead of government data to be released on Thursday.

Iranian President Hassan Rouhani appeared on Tuesday to threaten to disrupt oil shipments from neighbouring states if Washington continued to press all countries to stop buying Iranian oil.

Trump was not specific on whether the additional 2 million barrels was a per-day figure - but worldwide daily demand is nearing 100 million bpd.

As president he has made more direct attacks on the organisation than any of his predecessors in a string of attempts to stabilise the oil market and push Saudi Arabia to increase its capacity.

The private sector in Iran was allowed to export crude oil in a bid to thwart US sanctions, Iran's first vice president said here on Sunday. While the comments were ambiguous, Iranian officials in the past have threatened to block the Strait of Hormuz, a major oil shipping route, in retaliation for any hostile US action.

Amazon announces Prime Day 2018: Brace yourselves for millions of deals!
While the tech deals draw the most attention, there are discounts on basically everything you might be in the market for. Prime Video , DVDs and Blu-Ray - Save up to 50 percent on popular movies and TV shows on digital, DVD and Blu-Ray.

An Indian official says his country, which imports 400,000 barrels per day of Iranian crude, would only recognise multi-lateral sanctions, rather than unilateral sanctions.

Crude prices ended slightly higher on Tuesday after a volatile session in which the US benchmark passed $75 a barrel for the first time in more than three years before turning negative and later recouping its losses.

Oil sanctions on Iran are expected to resume on November 4, two days ahead of congressional midterms.

U.S. President Donald Trump has urged Saudi Arabia to increase its oil output amidst the U.S. upcoming sanctions against the energy sector of the Islamic republic.

The debate at this time is how to compensate for disruptions in Libya, Venezuela and Iran. Inventories at Cushing, Oklahoma, fell 2 million barrels last week, according to a separate forecast compiled by Bloomberg.

Matthew Smith, the director of commodity research at ClipperData, told UPI that oil prices so far this week are moving on one hand on OPEC pledges of more production, but correcting later on fears of supply-side strains.

While OPEC leader Saudi Arabia will pick up the slack, Morgan Stanley believes oil markets will be undersupplied by around 600,000 in the second half of 2018. That's what we're doing. "We are also working with oil market participants, including producers and consumers, to ensure market stability".

Related news