Oil Prices Rise On Supply Worries

The national flags of Russia and Saudi Arabia are seen during an OPEC meeting in Vienna

Even though geopolitical turmoil such as that of the U.S./Iran conflict has understandably inspired many experts to forecast grim scenarios for global crude supplies, the IEA report strongly suggests that worldwide producers are more than capable of dealing with shortfalls.

He said efforts by US President Donald Trump to remove Iran from the oil market through sanctions had allowed Russian Federation and Saudi Arabia to take OPEC as a hostage.

Add in a seasonal increase in oil use and the potential for further production shortfalls elsewhere in the world, and supply could start seriously trailing demand within weeks.

"Russia and Saudi Arabia claim they seek to balance the global oil market, but they are trying to take over a part of Iran's share", Ardebili told Iran's oil news agency SHANA.

Even as Indian officials continued their hectic parleys with Washington for a waiver, a Reuters report said that India was expected to halve its oil imports from Iran in September-October.

Two supertankers loaded with crude oil left Iran's biggest export terminal for China on Wednesday, Bloomberg reported citing ship-tracking data.




The IEA forecasts non-OPEC production to grow by 2 million bpd in 2018 and 1.8 million bpd in 2019, characterized by "relentless growth led by record output from the U.S". The concern for Trump and Republican candidates has been higher global oil prices and higher gasoline prices hitting voters in the pocket book and possibly causing voter backlash at the polls.

Organization of the Petroleum Exporting Countries (OPEC) monthly report released on Thursday showed Iran's oil production fell by 150,000 bpd in August, despite OPEC's monthly oil production rising 278 million bpd to reach 32.6 million bpd. OPEC is now supplying 32.7 million barrels a day, according to a Bloomberg survey, and that is with Iraq, Nigeria and Libya all producing near multi-year highs while their security situations deteriorate.

Benchmark Brent crude was up 16 cents or 0.2 percent at $78.34 a barrel after falling 2 percent on Thursday.

Iran's exports so far this month slumped to around 1.3 million barrels a day.

USA crude oil production is expected to rise by 840,000 bpd to 11.5 million bpd next year, lower than a previous expectation to increase 1.02 million bpd to 11.7 million.

"In the meantime, traders have their hopes up that firmer details on production from OPEC and its allies will come out of the meeting among global producers".

Related news:

Hot News

isis-killer-beheading-video-story-top Secret code names for Meghan, Prince Harry and Cambridges revealed
Sep 16, 2018 - 00:22
This is the end of your normal life, the end of your privacy - everything'. "He has the right to speak and if she doesn't like it it's just too f-king bad".

isis-killer-beheading-video-story-top Chelsea coach Maurizio Sarri struggling to give up smoking
Sep 15, 2018 - 23:47
He has said : "I'm not sure when I am going to play". "I'm undecided, but enjoying my time to really concentrate on my badges". Chelsea host promoted side Cardiff next on Saturday (3pm) at Stamford Bridge.

isis-killer-beheading-video-story-top Hurricane Helene heading towards the United Kingdom , bringing chances of gale force winds
Sep 15, 2018 - 23:33
Ireland is expected to endure the worst of the storm, while Wales and the Cornish peninsula will bear its brunt in England. The patch of gusty weather that's left is producing winds of up to 35 miles per hour as it drifts west at 16 mph.

isis-killer-beheading-video-story-top Tottenham goalkeeper Lloris fined for drunk driving
Sep 15, 2018 - 23:18
Hugo Lloris has been banned from driving for 20 months and fined £50,000 after pleading guilty to drink-driving. Pochettino said that Lloris has beaten himself up over his mistake but deserved a second chance.

isis-killer-beheading-video-story-top Terry's Chelsea return down to him, says Sarri
Sep 15, 2018 - 21:13
I am very open with him because he is the history of the club. "We are not as solid as I want in the defensive phase". I am not able to think about this as a job, like work.

isis-killer-beheading-video-story-top Arsenal boss Unai Emery calls for improvement from Mesut Ozil
Sep 14, 2018 - 23:27
We will see what happens but I feel good. 'We will have a chance, but you are talking about a team with good players. Also, I think he is working for the team to help us with his quality.

isis-killer-beheading-video-story-top Russia: Xi, Putin Meet at Eastern Economic Forum
Sep 14, 2018 - 23:27
Abe and his officials may have not been pleased - the Japanese were "dealt a setback" because of Putin's delayed arrival, according to reports.

isis-killer-beheading-video-story-top Are Justin Bieber and Hailey Baldwin already married?
Sep 14, 2018 - 22:45
She said, "I just picture lights strung everywhere". "I think having it in the woods would be so attractive ". We knew Justin Bieber and Hailey Baldwin went to get their marriage license on Thursday.

isis-killer-beheading-video-story-top NOAA: Sub-Tropical Storm Joyce Projected Path, Spaghetti Models
Sep 14, 2018 - 21:38
The storm had also picked up considerable speed and was racing west at 21 miles per hour toward the Lesser Antilles. Britain is bracing itself for strong winds and heavy rain as Hurricane Helene makes its way across the Atlantic.

isis-killer-beheading-video-story-top Canada's Freeland to hold NAFTA talks on Tuesday as time runs short
Sep 14, 2018 - 20:41
Trade Representative Robert Lighthizer over the weekend after their talks ended on Friday, and their teams have had "a lot of contact" since then.

isis-killer-beheading-video-story-top Former Trump campaign chairman Paul Manafort to 'plead guilty'
Sep 14, 2018 - 19:15
In August, in a separate trial in Virginia, a federal jury found Manafort guilty on eight counts of federal tax and banking crimes.

isis-killer-beheading-video-story-top Djokovic Takes US Title
Sep 14, 2018 - 19:09
Never was that more apparent than the game that stood out on this evening, with Djokovic serving while down 4-3 in the second set. Serbia's Novak Djokovic defeated Juan Martin del Potro in the US Open final to claim his 14th Grand Slam title on Sunday in NY .

isis-killer-beheading-video-story-top Fellow Republicans Disagree With Trump on Puerto Rico
Sep 14, 2018 - 18:28
While Trump battles the media over his response to Maria, FEMA is briefing Americans on what to expect from Hurricane Florence. The Puerto Rican government officially accepted the hurricane death toll at 2,675, but President Trump calls the number phony.

isis-killer-beheading-video-story-top Trump Never Called for Syrian President's Assassination, Pentagon Says
Sep 12, 2018 - 19:13
The reporter explains how Trump asked how much the defence system costs and baulks at the $1 billion price tag. The meeting was held a couple of weeks after PM Modi had met Donald Trump after he became US President.

isis-killer-beheading-video-story-top New iPhones May Support Dual SIM Cards
Sep 12, 2018 - 17:56
So putting together all the available information, what we might be looking at is iPhone Xs , Xr and big screen Xs Max or Plus. It is likely to be powered by A11 Bionic or the A12 Bionic processor, may have 4GB RAM and at least 32GB internal storage.