Published: Fri, September 14, 2018
Business | By Tara Barton

Oil slips as economic concerns counter tighter supply

Oil slips as economic concerns counter tighter supply

Oil has risen above $80 a barrel to its highest level this year amid concerns about supplies from Iran and a fall in USA stockpiles.

Since spring, when the Trump Administration said it would impose sanctions on Iran, traders have been focusing on the impact they could have on global supply.

Brent crude futures slipped 38 cents, or 0.5 per cent, to $79.36 a barrel. USA light crude was 15 cents higher at $67.69. Analysts had expected a decrease of 805,000 barrels.

Official U.S. government data is due to be released on Wednesday.

South Korea has made a decision to comply with USA demands to cut oil imports from Iran to zero, becoming the first to do so out of the top three buyers.

But the USA government does not want to push up oil prices, which could depress economic activity or even trigger a slowdown in global growth.

But keen not to see oil prices spike, US Energy Secretary Rick Perry met with Saudi Energy Minister Khalid al-Falih on Monday in Washington, as the Trump administration encourages big oil-producing countries to keep output high ahead of the renewed sanctions.

Mac Miller Was Reportedly Dead for Hours Before His Body Was Found
It is believed he died from an overdose but his death certificate states the cause of death is still unknown listed as "deferred". The initial 911 call was reported a "cardiac arrest" upon the assumption the caller was present during the ordeal.

U.S. crude oil production fell by 100,000 bpd, to 10.9 million bpd, as the industry faces pipeline capacity constraints.

"Things are tightening up", the agency said in its monthly report, but added: "As we move into 2019, a possible risk to our forecast lies in some key emerging economies, partly due to currency depreciations versus the U.S. dollar raising the cost of imported energy". Novak did not provide details.

A group of OPEC and non-OPEC producers have been voluntarily withholding supplies since January 2017 to tighten markets, but with crude prices up by more than 40 percent since then and markets significantly tighter, there has been pressure on producers to raise output.

The International Energy Agency said on Thursday that although the oil market was tightening at the moment and world oil demand would soon reach 100 million barrels per day (bpd), global economic risks were mounting.

"Markets ... are expecting substantial price pressure as Iran sanction loom", said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore.

Global oil output hit a record last month, and the IEA sees continued increases in oil production.

The United States and China have imposed a series of tariffs on each other's goods since May that have unnerved equity markets, while a rising US dollar has put emerging market currencies under pressure, raising the energy bill for some of the world's largest oil importers.

Like this: