Oil rises 1% ahead of Iran sanctions

Oil rises 1% ahead of Iran sanctions

Oil rises 1% ahead of Iran sanctions

They dropped 1.3 percent the day before, after hitting their lowest since August 17 at $65.33 a barrel.

The contract bottomed at $63.11/Bbl earlier in the session, its lowest price since April 9.

Russian Federation is pumping oil at a post-Soviet high, US crude output has topped 11 million barrels a day and a Reuters survey of OPEC production shows the group more than made up for any declines in Iranian shipments in October. US President Trump has made various comments suggesting that OPEC should up its output quotas and help lower the price of oil.

According to API data, the six-week running tally of crude oil inventory gains equals 27 million barrels.

USA crude was up 26 percent this year through the high on October 3.

Yet over the past 20 trading sessions, oil and stocks both peaked in early October and both have lost almost 10 percent through the end of the month.

Meanwhile, Russia raised crude and condensate output to a record of nearly 11.41 million barrels a day in October, according to a government official, who asked not to be identified.


Front-month Brent crude futures were at $73.04 per barrel early on Friday, up 15 cents, or 0.2%, from their last close.

The American Petroleum Institute (API) reported yet another crude oil inventory build this week, this time of 5.69 million barrels for the week ending October 26. If Iran's output falls by 1 million barrels per day under the new sanctions, other OPEC and oil-producing countries can make up the shortfall, he said.

U.S. WTI crude futures could post further losses if they break through support levels between $64.50 and $64.40 a barrel, Anthony Grisanti, founder and president of GRZ ENERGY, told CNBC's "Futures Now" on Tuesday.

However, with last week's increase turning out to be less than expected, oil's fall was somewhat limited. While the USA commercial crude oil inventories did increase by 3.2 million barrels from the previous week it was buffeted by a 1.5-million-barrel release from the SPR.

"There's this perception that there's enough oil in the market right now to get through the Iranian sanctions".

While U.S. drillers may take their foot off the gas a bit until new pipelines from the Permian Basin come on in 2019 and 2020, production is still heading higher. WTI increased 0.51 dollar to settle at 67.33 dollars a barrel, while Brent added 0.72 dollar to 76.89 dollars a barrel.

News of a global economic slowdown will impact sentiment but the market appears to be relatively well supplied despite the imminent Iran sanction effect.

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