Oil dips on signs of ample supply despite OPEC cuts, Iran sanctions

Oil dips on signs of ample supply despite OPEC cuts, Iran sanctions

"Saudi Arabia appears to be focusing more on pushing up crude higher rather than restoring the balance in oil's supply and demand, and that is underpinning prices".

Brent for July settlement fell 2 cents to $78.21 a barrel on the London-based ICE Futures Europe exchange.

Brent and WTI last week reached their highest since November 2014 at $78 and $71.89 per barrel respectively.

The United States has announced it will impose sanctions on Iran over its nuclear program, raising fears that markets will face shortages later this year when trade restrictions take effect.

OPEC is to focus on oil inventory, rather than price.

China, France, Russia, Britain, Germany and Iran all remain in the nuclear accord that placed controls on Iran's nuclear programme and led to a relaxation of economic sanctions against Iran and companies doing business there.

China, which is the world's biggest importer of oil, saw refinery runs rise 12 per cent in April compared to the same time a year ago to about 12m barrels of oil per day.


With renewed U.S. sanctions looming against OPEC-member Iran and oil demand strong, analysts said crude prices were well supported. American measures could cut the Persian Gulf nation's crude exports, and traders are watching whether OPEC and its allies will end their agreement to curb supply and instead increase production to fill in the gap.

Yesterday, OPEC downplayed the impact of the United States shale boom, but warned about USA trade squabbles.

Greg McKenna, chief market strategist at futures brokerage AxiTrader, says it is still "far from certain" that sanctions "will bite in the way intended".

OPEC's success with the oil production cutting deal has been to a significant extent aided by Venezuela's catastrophically dropping production as the country grapples with foreign exchange shortage, US sanctions, and a devastating economic crisis.

The surge in oil prices comes at a time of tight supply amid record Asian demand and voluntary output restraint by the Organisation of the Petroleum Exporting Countries and non-OPEC producers, including Russian Federation.

On the other hand, USA production is growing at a pace that made traders hesitate last week after Baker Hughes reported yet another increase in drilling rigs.

Related:

Comments

Latest news

Ronaldo hands Real Madrid a Champions League boost
Zidane was also asked whether Neymar would be able to work alongside Cristiano Ronaldo , to which he responded: "Good players are always compatible".

Sonam Kapoor looks drop dead gorgeous in white gown!
The fit-and-flare kurta was dotted with delicate gold embroidery, and was draped with an understated dupatta. She wore a chevron patterned lehnga paired with a grey choli and metallic dupatta, from Anamika Khanna.

'Deadpool 2' review: The Merc with a Mouth's newest adventure DOA
Going rogue on the X-Men lands Deadpool in a prison for mutants with Russell and that's when the movie really takes off. Particular praise has gone out to Ryan Reyolds' performance, the meta humour and Zazie Beetz' Domino.

US Secretary of State Mike Pompeo promises North Korea 'prosperous' future
As well, it and other members of the 1950-53 UN Command (including Canada) are still technically at war with North Korea. Add North Korea as an interest to stay up to date on the latest North Korea news, video, and analysis from ABC News .

Oregon Had Sports Betting Permission Before Supreme Court Ruling
Major League Baseball has issued a statement saying the Supreme Court ruling will have "profound effects" on the league. A man watches a baseball game in the sports book at the South Point hotel-casino, Monday, May 14, 2018, in Las Vegas .

Experimental Vaccine Will be Used against Ebola Outbreak in the DRC
A cordon ribbon is seen around the isolation ward at Bikoro hospital in the Democratic Republic of Congo. Wangata health zone is adjacent to the provincial port city of Mbandaka (population 1.2 million).

Thiem, Zverev advance to Madrid final
Thiem was punished for a sloppy first game that ended with the Austrian double-faulting to gift Zverev the lead. On the men's side, second-seeded Alexander Zverev brushed aside Denis Shapovalov 6-4, 6-1 to reach the final.

Lewis Hamilton cruises to Spain victory
But staying out was not an option today. "It obviously looks wrong, but from the inside it was the right thing to do", he said. Vettel gave away his position when Ferrari chose to go for an extra stop and give the German driver fresher tires.

Mackenzie Dern Misses Weight; UFC 224 Fight vs. Amanda Cooper Will Proceed
More than anything, Dern says she's just as disappointed in herself as anybody else over her latest weight cutting disaster. I went and ran and everything came off, so it's flawless .' ... "I've always wanted to fight here in Brazil", she said.

Exit polls are just for entertainment: Siddaramaiah
He has claimed that the BJP will secure 140-150 seats and that he will invite Prime Minister Narendra Modi to his swearing in. While Belagavi district had the highest number of voters (37,23,585), Kodagu district had the lowest voter share (4,33,846).

Florida Gov. will attend embassy opening in Jerusalem
The transfer will be carried out by upgrading the current US Consulate General in Jerusalem to embassy status. Israeli army warplanes on Saturday struck targets in the blockaded Gaza Strip, the army announced.

Comment on 'dying' John McCain draws bipartisan condemnation
Biden's son, Beau Biden, was also diagnosed with and died from the same type of brain cancer McCain is diagnosed. White House press secretary Sarah Huckabee Sanders said yesterday that Sadler still works for the White House.

Tigers top Mariners on Jose Iglesias walk-off single
The Tigers have actually won seven of their last 10 home games, but just 4-10 in Boyd's last 14 home starts. Robinson Cano chased Fulmer from the game in the fifth when he hit a 3-run home run to make it 6-2 Seattle.

In Syria killed more than two dozen foreign fighters
The spokesperson for Israeli Prime Minister Benjamin Netanyahu told Matt Frei Israel doesn't want war with any of its neighbours. Note that the experts of the human rights organization based in London, receive data from the network of informants in Syria.

UFC 224 breakdown, betting odds and picks
Pennington showed a ton of heart surviving as long as she did, but Nunes poured it on in the final frame to get the win. Nunes and Pennington are friends away from the cage, and that probably won't change.

Other news