IEA: Worldwide Oil Supply Reaches Record High During August

Oil prices climb as Iran sanctions loom

Outside the United States, traders have been focusing on the impact of looming US sanctions against Iran, which will target oil exports from November. The global benchmark earlier reached $80.13 a barrel, its highest level since May 22.

India's Business Line reports, a senior Indian government official was quoted saying that Indian imports of American oil should not be seen as a replacement for Iranian containers.

Oil prices were up on the week, buoyed in earlier sessions by a larger-than-expected draw in USA crude inventories, weakness in the US dollar and a reported fall in US production, Commerzbank said in a note.

This is occurring just ahead of the peak demand period for these fuels, with diesel needed for tractors to harvest crops and the arrival of colder weather during the Northern Hemisphere autumn raising consumption of heating oil.

Outside the United States, traders have been focussing on the impact of US sanctions against Iran that will target oil exports from November.

U.S. crude stocks fell 5.3 million barrels in the week to September 7 to 396.2 million barrels, the lowest since February 2015 and about 3 percent below the five-year average for this time of year, the U.S. Energy Information Administration (EIA) said on Wednesday.

According to Oil Price, US Secretary of State Mike Pompeo has said that the US would consider waivers "where appropriate", but reiterated that the country expects to have Iranian oil exports to "zero".

Benchmark Brent crude LCOc1 futures rose 68 cents to settle at $79.74 a barrel.

The institute reported a slight draw of 1.2 million barrels in the oil inventories for the previous week.

Opec and its allies will meet in Algiers this month to assess global oil markets after having agreed to increase output at their last meeting in June.

Washington on Monday offered 11 million barrels of high-sulphur, or sour, crude from its Strategic Petroleum Reserve (SPR) for delivery from October 1 to November 30.

"As we move into 2019, a possible risk to our forecast lies in some key emerging economies, partly due to currency depreciations versus the USA dollar, raising the cost of imported energy", the agency said.

The Paris-based IEA maintained its forecast of strong growth in global oil demand this year of 1.4 million bpd and another 1.5 million bpd in 2019, unchanged from its previous projection.

Output from OPEC member Iran in August hit its lowest level since July 2016, the IEA said, "as more buyers distanced themselves from Tehran ahead of looming United States sanctions", the report said.

Meanwhile, Hurricane Florence is set to park above the Carolinas coastline, threatening fuel markets along the US East Coast.

Further oil price increases could trigger a slowdown in domestic or global economic growth, which could further complicate the U.S.' Iran policy and Trump's domestic political situation.

Related News:



Most liked

Trump claims Hurricane Maria death toll in P.R. rose 'like magic'
Political officials from both sides of the aisle condemned the president's statements and said they believed the death toll. The loss of any life is tragic; the extent of lives lost as a result of Maria is heart wrenching.

Russian Armed Forces ready to withstand potential threats: Putin
The main stage of the Vostok-2018 strategic drills was held at the Tsugol firing range in the Trans-Baikal Region. On site, Mr Putin praised the "mastery" of the Russian army and its "ability to deal with potential threats".

Eric Trump: Woodward wrote book to 'make three extra shekels'
It is virtually assured of joining Michael Wolff's " Fire and Fury " as a million-selling takedown of Trump. However, the news reported by America's Last Line of Defense is fake.

NASA posts phenomenal video of Hurricane Florence from station
NASA also shared a video of the Category 4 storm from the International Space Station . The hurricane is expected to reach 150 miles per hour before landfall Thursday night.

Weather Channel Defends Reporter As He Allegedly Exaggerates Report On Hurricane Florence
The weather service later measured a storm surge 10 feet deep in the city, which lies on the Neuse River near the Atlantic coast. Forecasters said this onslaught could last for days, leaving a wide area under water from both heavy downpours and rising seas.

Hurricane Florence starts battering US East Coast
As of 11am local time, Florence was centred about 145 miles south east of Wilmington and its forward movement slowed to 10mph. The gradually slowing but still life-threatening storm is moving northwest at 15 miles per hour (24 kph).

Reliable journalist delivers positive Liverpool team news ahead of Spurs clash
Having played for both Newcastle United and Liverpool , the Netherlands global had never scored in 58 games away from either St. It is not about playing well, it is about attitude and to say, "Hey, come on, we are aggressive and we try to win".

Tennis Umpires Mulling Boycott Of Serena Williams Matches
We are now hyper-aware of the injustices and inequities of the world, of which sport isn't immune. For a prime example of this muddying of the Gatorade, look no further than Serena Williams .

Australia searches for culprit hiding sewing needles in strawberries
Police asked anyone who finds a needle in their strawberries to take the punnet their local station. It's a crime so unusual that any motive seems almost inconceivable.

Mychal Kendricks visits Seahawks
Kendricks isn't expected to be sentenced until January 24, and according to Schefter the Seahawks will put him right to work. He and Sonoiki were charged with one count of conspiracy to commit securities fraud and one count of securities fraud.

Feminist attacks Apple saying iPhone size not suitable for women's hands
The 7nm Apple A12 chipset is present under the hood of the newly unveiled iPhone Xs , iPhone Xs Max and iPhone Xr smartphones. Use the drop-down menus and sliders below to find the flawless contract plan for you.

Four dead as Florence drenches the Carolinas
A speed boat sits wedged in bushes in the parking lot of a waterfront hotel in New Bern, North Carolina, on September 14, 2018. More than 100 people were rescued and up to 75 more were awaiting rescue on Saturday morning, according to a town official.

Terry's Chelsea return down to him, says Sarri
Maurizio Sarri has been told how he can transform Chelsea into a "sensational" team by Arsenal legend Nigel Winterburn. Asked which teams are in title contention, Sarri said: "At the moment I can answer City or Liverpool , at the moment".

Hurricane Florence projected path: How to track Hurricane Florence
And the storm surge, which could be as much as 12 feet in some areas, will be on top of sea level rise from climate change. Roy Cooper said at a briefing today.

Amir Khan beats Vargas in unanimous points decision
From there, Khan used his jab and quick combinations on the inside to outbox Vargas, who was bleeding heavily from the nose. It was absorbing and typical Khan; you could not take your eyes off the action for fear of missing a knockdown.