WTI Crude Oil and Natural Gas Forecast May 9, 2019

United Nations High Commissioner for Human Rights Michelle Bachelet

So far this year, prices have gained more than 30% as the global supply outlook has tightened due to US sanctions on crude exporters Iran and Venezuela, as well as supply cuts by OPEC, Russia and their allies.

Meanwhile, U.S.' sanctions on Iran and Venezuela led to major production cuts in these countries, kept global oil supply low, and prevented a fall in oil prices. "Part of the oil is also likely to have gone into building up stocks before the tougher United States sanctions came into force against Iran".

West Texas Intermediate crude for June delivery fell 93 cents, or 1.5%, to $61.01 a barrel on the New York Mercantile Exchange at 1:34 p.m.in Dubai, after dropping as much as $1.90 earlier.

The comments from Lighthizer came after President Donald Trump threatened to implement the tariff increase in a post on Twitter on Sunday, claiming trade talks between the USA and China are moving "too slowly".

For 2020, the EIA forecast US output will average 13.38 million bpd, making the United States the world's biggest oil producer ahead of Russian Federation and Saudi Arabia. The first round of sanctions went into force on August 6 and the second round, which targets Iran's oil exports and banks, were snapped back on November 4.

Crude oil prices drifted lower on Tuesday as global growth concerns rose amid rising U.S.

"We had two big geo-political events over the weekend, one is the news from Iran with U.S. carrier, bombers group headed to Middle East and all the stuff with China about tariffs", said Bob Haberkorn, senior market strategist at RJO Futures.




US crude oil stockpiles fell unexpectedly last week, the Energy Information Administration said on Wednesday, and strong gasoline demand could point to additional drawdowns in coming weeks as driving season approaches.

Iran had always been a major crude supplier for South Korea, with Asia's fourth biggest oil consumer importing around 12 million barrels/month on average from the Persian Gulf producer over the past decade, accounting for about 10% of Seoul's total refinery feedstock imports.

US sanctions against Iran and Venezuela and supply cuts by Opec+, which includes most Opec members and a number of other producer-nations led by Russian Federation, helped to tighten the market and support prices.

Saudi oil production for June is expected to remain below the kingdom's ceiling under an agreement between the Organization of Petroleum Exporting Countries and its allies limiting output until the end of next month, the person said.

India was allowed to buy an average 300,000 bpd of oil during November-April, but actual volumes varied from month to month due to lack of ships after foreign shipping lines backed out of Iranian deals under pressure from United States sanctions.

US Energy Secretary Rick Perry said on Tuesday that Saudi Arabia, OPEC's de facto leader, would increase its oil production to meet needs arising from sanctions on Iran.

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