Why Oil Looks Set for a Major Fall

Why Oil Looks Set for a Major Fall

Oil was mixed on Friday as a Canadian supply outage supported United States crude prices, while an increase in production from the Organization of the Petroleum Exporting Countries's (Opec) biggest exporter Saudi Arabia pushed Brent lower.

In addition to reducing the price of its August barrels, Saudi Arabia also told the Organization of the Petroleum Exporting Countries (OPEC) that it increased production by nearly 500,000 barrels per day last month. However, summer months in the USA usually lead to increased demand for oil, boosting the price of gasoline in a midterm election year. "Please stop this method", the oil ministry news agency quoted Kazempour Ardebili as saying.

Both countries resisted the oil cartel's decision in June, even though OPEC demurred on how much it would boost supply.

Oil held near US$74 (RM299) a barrel amid estimates that U.S. crude inventories declined for a fourth week, compounding concerns that global markets are growing increasingly tight. The American Petroleum Institute, an industry body, was said to report that stockpiles fell by 4.51 million barrels.

Trump's OPEC tweets come as gasoline prices are more than 60 cents a gallon higher than a year ago. Iran now exports 2.9 million barrels per day of crude oil and condensate to Asian and European markets.

Scott Pruitt resigned. Twitter was ready
According to The Washington Post , Pruitt pushed to find his wife a well-paying job with a politically connected group. Americans deserve an EPA administrator who they know, without a shadow of a doubt, has their best interests in mind.

U.S. job growth strong but unemployment rate rises to 4%
The job growth shows the labour market shrugging off worries about a slowdown triggered by trade fights or rising borrowing costs. The report also shows that the share of workers who have multiple jobs remained stable over the a year ago at 4.8 percent.

Matthaeus tips England to meet Brazil in World Cup final
However he believes that Sweden can beat England "if they continue what they've done in the World Cup so far". Not just at penalties but in everything he does, and we'll have to work hard to stop him", he cautioned.

By 5:00 pm GMT, U.S. West Texas Intermediate (WTI) oil futures had reached $74.90 a barrel and the global oil benchmark, Brent, $78.50/Bbl. Even if Europe tries to convince Trump to change his mind, the U.S. wish to impose a more effective agreement with Iran remains.

"Increased Saudi crude availability that is being enhanced by reduced OSPs (official selling prices) into Europe and other regions is providing a strong counter against curtailed Libyan export activities", Ritterbusch wrote. Oil output cuts by Opec and allies, including Russian Federation, since January 2017 have reduced a glut of crude.

Iran will stop oil exports from the Strait of Hormuz, the world's most important oil chokepoint, if the USA succeeds in halting crude sales from the Persian Gulf nation, according to a Revolutionary Guards official.

"Countries around the world-including key American allies and partners-already find themselves in the crosshairs, since the USA measures penalize countries and companies that do business with Iran", wrote Suzanne Maloney, deputy director of foreign policy and senior fellow at the Center for Middle East Policy, Energy Security and Climate Initiative at the Brookings Institution.

Also on Thursday, data showed United States crude stockpiles rose unexpectedly last week by 1.2 million barrels. Besides, for the third week in a row, U.S. production stagnated at 10.9 million bpd - close to the 11 million bpd production that many had forecast for the year. On the supply side, the agreement to cut production among OPEC members and their allies managed to contain, and even reduce, world oil supply. What's more, the cuts in crude production exceeded what had been agreed.

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