Published: Sat, August 04, 2018
Economy | By Shawn Conner

Oil prices drop on oversupply concerns as OPEC output increased in July

Oil prices drop on oversupply concerns as OPEC output increased in July

"The risk premium for Brent is definitely on right now given the war of words we've seen against Iran - in general, political instability", said Ashley Petersen, lead oil analyst at Stratas Advisors in NY.

Official data from the U.S. Energy Information Administration is due later on Wednesday.

USA crude inventories USOILC=ECI rose 3.8 million barrels last week as imports jumped, the government's Energy Information Administration said.

Prices rose amid fears of supply...

Oil prices fell on Tuesday, closing out the largest monthly decline in two years on supply worries after OPEC output reached a 2018 high in July, overshadowing reports that the United States and China might reopen trade talks that could boost demand.

Shrugging off concerns about global trade tensions, BP CEO Bob Dudley said in a conference on second quarter earnings that crude oil prices would be supported by supply disruptions from OPEC members Iran, Libya and Venezuela, but his outlook for the price of oil was lower than current market levels.

Parts of Virginia city evacuated over possible dam failure
Engineers determined that the dam's spillway was not large enough to handle water flow in the event of extreme weather conditions. The original surface area of the lake was reported to be 44 acres and has been reduced to 19 acres due to sedimentation.

Futures in NY were little changed after climbing 2.1 percent on Monday, the biggest gain in more than a month.

"It seems President Trump has been taken hostage by Saudi Arabia and a few producers when they claimed they can replace 2.5 million barrels per day of Iranian exports, encouraging him to take action against Iran", Hossein Kazempour Ardebili told Reuters.

Brent for September delivery settled at $74.29 a barrel, down 25 cents, or 0.34%, or a weekly gain of 1.7%.

Last month, Brent fell more than 6 percent and us crude slumped about 7 percent, the biggest monthly declines for both benchmarks since July 2016.

Oil prices rebounded from levels reached over the past two weeks as U.S. sanctions threatened against Iran began to cut exports from Tehran.

Tuesday evening the American Petroleum Institute (API) reported that crude inventories jumped by 5.6 million barrels in the week ending July 27.

Support victims of the Carr Fire with the Carr Fire Relief Fund
Redding Police on Tuesday asked for help from the public locating four people who are still missing. Mendocino County Sheriff's Office issued an evacuation warning around 4:40 p.m.

WTI price declined by 1.32 percent while Brent's loss was pared at 0.32 percent. "While we have some bearish factors, including rising United States oil production, a trade war between the U.S. and China isn't drastically escalating, and that sense of relief is supporting prices".

OPEC hiked production 70,000 barrels per day to 32.64 million bpd, a 2018 high.

A Reuters survey showed the Organization of the Petroleum Exporting Countries (OPEC) increased production in July.

The survey also found that OPEC's adherence with supply targets slipped to 111 percent in July from a revised 116 percent in June, meaning it is still cutting more production than agreed. A strike hit production at Total's three oil fields in the North Sea, and concerns remain over Saudi Arabia's suspension of crude shipments through a key Sea transit route following attacks by Yemeni rebels.

Concern over slowing economic growth because of a trade dispute between the USA and China are also putting downward pressure on the market.

Last month, China and the United States slapped tariffs on $34 billion of each other's goods, and another round of US tariffs on $16 billion in Chinese goods is expected in August.

Andy Murray happy to tick a mental box after Washington win
Andy Murray was triumphant in the first round of the Washington Open, but made hard work of beating world No 77 Mackenzie McDonald .

Like this: