Oil prices climb on tightening U.S. market

Oil prices climb on tightening U.S. market

Oil prices climb on tightening U.S. market

After the U.S. withdrew from the Iranian nuclear deal in May, it said it would reimpose economic sanctions against Tehran by November.

U.S. crude stockpiles rose 1.3 million barrels last week, according to data from the U.S. Energy Information Administration, against analysts' expectations of a 3.5 million-barrel decline.

Referring to reports that Saudi Arabia may increase its oil exports to replace Iranian oil in world markets, Jahangiri said: "Anyone trying to take away Iran's oil market (share) would be committing great treachery against Iran and will one day pay for it".

"Your tweets have increased the prices by at least $10", Kazempour Ardebili said of Trump, according to news outlet SHANA. "Since Venezuela and Libya failed to produce, OPEC countries chose to increase their output by one million barrels to compensate", Sonatrach's CEO noted, adding: "This is why prices stand at the same level".

Secondly, a higher production by Saudi Arabia not necessarily would translate into higher global production since it is already declining in Libya, Nigeria, and Venezuela amid expectations that exports from Iran would decline, once the sanctions set in. Both the administration and the Saudis later clarified the dialogue between the two sides, explaining that Saudi Arabia stated it has 2 Mbd of extra capacity to add global markets when necessary.

Iran's First Vice President Eshaq Jahangiri on Sunday warned its rival OPEC producer Saudi Arabia it would never take Tehran's "place" on the worldwide oil market.

While the White House later backed away from an agreement, the tweet came after oil and gasoline prices surged last week even after Saudi Arabia convinced OPEC to potentially add almost 1 million barrels a day to the market.

Reid said that he expected oil to stay around its current price, with a possible increase to $80 a barrel.

WTI (oil futures on NYMEX) witnessed good two-way price movements so far this Wednesday, now down more than a dollar from daily tops at $ 74.88, as the recovery attempts remain capped by the $ 74 handle.

But the USA official, Brian Hook, also said that keeping prices stable in the absence of Iranian crude is also important.

"Now, we are working to minimize disruptions to the global market, but we are confident that there is sufficient global spare oil production capacity".

WITH Saudi Arabia expressing its ability to raise oil production by two million barrels in obedience to pressures from US President Donald Trump, there are fears that Federal Government's 2018 budget just recently signed by President Muhammadu Buhari may be in trouble.

Oil prices edged up on Wednesday, lifted by a report of declining US fuel inventories amid the ongoing crude supply outage at Syncrude Canada in Alberta, which usually supplies the United States.

China, India, Japan, and South Korea are the top customers of Iranian crude.

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