Breaking News
0

UPDATE 14-Oil up on Iran sanctions but set for weekly decline

CommoditiesAug 10, 2018 17:14
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. UPDATE 14-Oil up on Iran sanctions but set for weekly decline

* Iran sanctions expected to squeeze oil supplies

* U.S. gasoline demand seen slowing in autumn

* Trade war boosts dollar, hits energy demand outlook

* U.S. drillers add most rigs since May -Baker Hughes (Adds CFTC data, recasts fourth and fifth paragraph)

By Jessica Resnick-Ault

NEW YORK, Aug 10 (Reuters) - Crude oil prices rose more than 1.0 percent on Friday as U.S. sanctions against Iran looked set to tighten supply, but futures contracts posted a weekly decline as investors worried that global trade disputes could slow economic growth and hurt demand for energy.

Benchmark Brent crude oil LCOc1 settled 74 cents higher at $72.96 a barrel on Friday. U.S. light crude CLc1 was 82 cents higher at $67.63 a barrel.

A sell-off on Wednesday left both benchmarks down for the week overall, with Brent off 0.5 percent and U.S. crude 1.2 percent lower.

Hedge funds and other money managers cut their bullish positions on U.S. crude in the week ending Aug. 7 to the lowest level since June, data showed on Friday. are expected to remain under pressure as U.S. gasoline demand slows going into the autumn and refiners shut for maintenance, pushing more crude into storage, said Tariq Zahir, managing member at Tyche Capital in New York.

"I think it now comes down to the point of what we see in demand numbers."

U.S. crude supplies fell less than expected in the latest week, and data released on Friday showed U.S. energy companies this week added the most oil rigs since May.

Drillers added 10 oil rigs in the week to Aug. 10, bringing the total to 869, the most since March 2015, General Electric (NYSE:GE) Co's GE.N Baker Hughes energy services firm said on Friday. RIG-OL-USA-BHI RIG/U

Escalating trade disputes between the U.S, China and other countries have dimmed the outlook for economic growth and boosted the U.S. dollar, making oil more expensive for consumers using other currencies. of major emerging economies including China, India and Turkey have slumped. these worries, prices got a boost from U.S. sanctions against Iran, which from November will affect oil exports from that country.

Although the European Union, China and India oppose the U.S. sanctions against Iran, many are expected to bow to U.S. pressure.

Analysts expect Iranian crude exports to fall by between 500,000 and 1.3 million barrels per day, with buyers in Japan, South Korea and India already dialing back orders.

The reduction will depend on whether buyers of Iranian oil receive waivers that would allow some imports. International Energy Agency said on Friday the oil market could see more turbulence. recent cooling down of the market, with short-term supply tensions easing, currently lower prices, and lower demand growth might not last," the IEA said in a monthly report.

"As oil sanctions against Iran take effect, perhaps in combination with production problems elsewhere, maintaining global supply might be very challenging."

Investors are wary of the trade dispute between Washington and Beijing.

In the latest round of levies, China said it would impose additional tariffs of 25 percent on $16 billion worth of U.S. imports. crude oil was removed from the list, replaced by refined products and liquefied petroleum gas, analysts say Chinese imports of U.S. crude will fall significantly. (Additional Reporting by Christopher Johnson in London and Henning Gloystein in Singapore; Editing by Dale Hudson and David Gregorio)

UPDATE 14-Oil up on Iran sanctions but set for weekly decline
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email