Published: Sat, November 03, 2018
Business | By Eloise Houston

Oil rises 1 percent ahead of Iran sanctions

Oil rises 1 percent ahead of Iran sanctions

"A lot of folks like to trade crude oil and other commodities to get away from the correlations you have in the stock market", said Kilduff, a CNBC contributor.

"We're pleased with the increase in production from the second quarter of 2018 recognizing it reflects contributions from just one of our key growth areas, the Permian", CEO Darren Woods said.

On Wednesday, U.S. oil prices rebounded 0.59 percent on fall of gasoline and diesel stockpiles in the previous week in the United States. Energy Information Administration data showed USA crude inventories last week climbed for a sixth straight week. WTI closed at $66.40 a barrel on Tuesday, while Brent crude settled at $76.23.

Output rose to a record 11.346 million barrels a day, according to a monthly report issued Thursday by the U.S. Energy Information Administration. "The flood of new supply may have put a cap on oil prices in the near term, barring any unforeseen outages", a report by OilPrice.com said.

Benchmark Brent crude oil was still down 10 cents at $75.81 US, reversing some of its earlier losses.

"Right now, from a crude oil perspective, the market is well supplied".

On Sunday, sanctions against Iran exports are scheduled to go back into effect. While it is unclear to what extent the impact will have on global oil markets, it could pave a path for a rebound in oil prices toward the $75-per-barrel level by the end of the year.

Oil has been under pressure on growing concern over a possible slowdown in global growth as the U.S-China trade dispute remains unresolved, and is starting to hit emerging market economies in particular.

Oil prices were down in afternoon trading prior to the release of the API data on inventories as traders feared additional inventory increases. The last week of October saw crude oil continue to trade bearish owing to firm United States dollars in broad market and bearish equity markets putting pressure on purchasing power of investors from Asia and other emerging markets.

Oil prices are falling again, Friday, as concerns over short-term supply worries ease, despite the USA sanctions imposed on Iran.

Monthly crude oil production in several USA states reached a record high.

The Organization of the Petroleum Exporting Countries (OPEC) boosted oil production in October to 33.31 million barrels per day (bpd), a Reuters survey found this week, up 390,000 bpd from September and the highest by OPEC since December 2016.

USA crude futures broke through the $65 level that had held in place for the last several months, raising the possibility of further selling.

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