Published: Fri, November 02, 2018
Business | By Eloise Houston

Oil Rises On Small Market Bounce, But Investors Eye Trade Outlook

Oil Rises On Small Market Bounce, But Investors Eye Trade Outlook

Meanwhile, Saudi Energy Minister Khaled Al-Faleh has recently said that the Kingdom will not be able to make up for all Iranian oil export caused by USA sanctions.

In a sign that oil supply remains ample despite the looming US sanctions against Iran's petroleum exports, crude output from the world's top 3 producers, Russia, the United States and Saudi Arabia, reached 33 million barrels per day (bpd) for the first time in September, Refinitiv Eikon data showed. "However, depending on what happens with Iran later this week, oil could go both ways, so the market seems to be taking a cautious stance near $67 a barrel".

Brent for December settlement, which expires Wednesday, traded at $77.15 a barrel on the London-based ICE Futures Europe exchange, down 19 cents. A speculative long position reflects a view that prices will increase.

"If Turkey gets more oil from Iraq, it will be more hard for Ankara to argue it needs a USA waiver to continue buying Iranian oil", the source told Reuters.

Russian Energy Minister Alexander Novak said on Saturday there was no reason for Russia to freeze or cut its oil production levels, noting that there were risks that global oil markets could be facing a deficit.

Data from Refinitiv Eikon showed that the three countries produced 33 million barrels of oil a day for the first time in September, an increase of 10million bpd since the start of the decade.

The Iranian first vice president further described Trump's decision to restore Iran sanctions as illegal, stressing that the move was against the diplomatic success that had culminated in the 2015 Iran nuclear deal or the Joint Comprehensive Plan of Action (JCPOA) - as is technically known.

The International Energy Agency (IEA) said on Tuesday high oil prices were hurting consumers and could dent fuel demand at a time of slowing global economic activity.

The United States has 875 operating oil drilling rigs in this week, adding two more from the previous week, according to data issued by oil service company Baker Hughes on Friday.

Washington reintroduced sanctions against Iran's currency trade, metals and auto sectors in August after USA withdrawal from a multinational 2015 deal that lifted sanctions in return for limits on Iran's nuclear program.

Baghdad has been saying that it would abide by the US sanctions on Iran.

Oil prices fell on Tuesday, depressed by concerns that the U.S.

The plan of supplying crude oil in stock market has frequently been raised in the past years but it doomed to failure. -China trade war are stirring demand-growth concerns. Saying that the United States won't sell crude oil from the Strategic Petroleum Reserve (SPR), Secretary Perry also noted that he was "comfortable that the world supply can absorb the sanctions that are coming".

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