Crude Oil Price Slumps on Small Decrease in Stockpiles

Anna Jefferson
August 10, 2018

West Texas Intermediate rose 52 cents to $69.01 and Brent climbed 54 cents to settle at $73.75 per barrel, on the strength of two sources at the Organization of the Petroleum Exporting Countries (OPEC) telling media that the Saudis pumped about 10.29 million bpd of crude last month, down 200,000 bpd from June.

Analysts expect Iranian crude exports to fall by between 500,000 and 1.3 million barrels per day, with buyers in Japan, South Korea and India already dialling back orders.

United States refined products exports climbed 174,000 b/d to 5.2 million b/d, although 351,000 b/d of that was residual fuel exports.

Today, the bulls jumped in after President Donald Trump tweeted that the sanctions were "the most biting sanctions ever imposed".

"Of course, such decisions being taken by the USA side are absolutely unfriendly and can hardly be associated with the. constructive atmosphere achieved at the latest meeting of the two presidents", he was quoted by Russian news agency Tass as saying. We will monitor this week's figures for another increase in inventory levels which could see oil prices move lower. USA crude futures rose 8 cents to $67.02 a barrel, having closed down 3.2 percent the day before.

Saudi Arabia rules out mediation in Canada row, mulls new measures
Bin Salman is the second most senior member of the Saudi regime, which has one of the worst human rights records in the world. But she said: "At the same time, we hope that Saudi Arabia and Canada will find a civilized solution to their differences".

West Texas Intermediate, the USA benchmark, shed 2% to $67.70 per barrel after the Ministry of Commerce released a new list of American goods that will be subject to tariffs.

The market was moderated by lingering trade tensions between the United States and China, the world's leading economies.

"As oil sanctions against Iran take effect, perhaps in combination with production problems elsewhere, maintaining global supply might be very challenging and would come at the expense of maintaining an adequate spare capacity cushion", the IEA said.

Japanese officials visited Washington last week seeking an early exemption to continue to buy Iranian crude but USA officials have refused to comment on the talks.

Concerns about oil supplies have eased as major producers have stepped up output, but the respite may be only temporary as tough new U.S. sanctions on Iran approach, the International Energy Agency has warned. Iran's oil exports to India rose by more than 40,000 b/d from June to 706,452 b/d in July.

China fires salvo in trade war with United States
The US already imposed additional tariffs on $34 billion worth of Chinese goods earlier in July, and China has responded in kind. The trade policies of US President Donald Trump has been slammed by China which says the measure of "extortion" won't work.

Official US fuel storage data is due to be released later on Wednesday by the Energy Information Administration (EIA).

French bank Societe Generale said there was now a "comfortable supply" in physical crude markets, but noted "Iran sanctions will take another 1 million bpd off the markets".

Furthermore, oil prices were dragged down by the increasing output of the Organization of the Petroleum Exporting Countries (OPEC) and Russian Federation.

China's automobile sales fell 4.0 percent in July from a year earlier to 1.89 million vehicles, an industry association said on Friday, amid rising concern over the potential fallout of the Sino-U.S. trade spat.

Bills acquire WR Corey Coleman from Browns
Once a former first-round pick of the Browns in 2016, Coleman sounds motivated to prove his now former team wrong. It'd be totally fine if the Browns truly felt that Corey Coleman wasn't going to develop into the star wideout.

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