Published: Sun, September 16, 2018
Money | By Ralph Mccoy

Oil price nears $80, Nigeria’s output rises

Oil price nears $80, Nigeria’s output rises

Meanwhile, August noticed OPEC's rude supply hit a nine-month excessive of 32.63 million bpd, no matter concerns over falling production and slashed derive admission to in most important producers Venezuela and Iran.

Oil traders were also watching the progress of category 4 Hurricane Florence that is expected to make landfall by Friday.

"Today's crude stock draw of 5.3 million barrels fell far short of the (American Petroleum Institute's) decline but was significantly larger than the normal draw of around 1 million barrels for this particular week", Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.

Oil prices rose on Tuesday amid looming United States sanctions against Iran's petroleum industry, despite efforts by Washington to get other major suppliers to make up for the expected disruption.

U.S. West Texas Intermediate (WTI) crude settled US$1.71, or 2.5 percent, higher at US$69.25 a barrel.

On Tuesday the U.S. Energy Information Administration cut its 2018 world oil demand growth forecast by 80,000 barrels per day to 1.58 million bpd.

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. India, along with some other countries, has sought "waivers" from Washington that would allow them to continue to import Iranian oil and avoid retaliation from the USA for a certain period of time. The State Department earlier this year called on buyers to stop importing Iranian barrels by November following President Donald Trump's decision in May to withdraw the U.S. from the Iran nuclear deal.

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In addition to wind impacts, there's going to be a unsafe storm surge ("wall of water" that arrives) and then persistent rainfall. Roy Cooper called Florence an "uninvited brute" that could wipe out entire communities as it grinds across the state.

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The Indian media outlet reports that Wells said the sanctions that come into force on 4 November were created to bring Tehran to book and non penalize India, which meets 83% of its crude oil requirements from outside.

Gordon Gray, HSBC's global head of oil and gas equity research, said there were "real risks" that Brent could hit $100 a barrel. The report provides further indication the rapid oil demand that helped Opec and allies get rid of a supply glut will moderate in 2019.

Russia's Novak said on Tuesday that Russian Federation and a group of producers around the Middle East which dominate oil cartel Opec may sign a new long-term co-operation deal at the beginning of December, the TASS news agency reported.

The latest data from OPEC, collected both by direct communication with producers and from secondary sources, shows a contrasting picture of production in Iran.

After years of holding back, OPEC opened the flood gates this summer by increasing crude oil production by 278,000 barrels a day from July to August.

U.S. crude stocks C-STK-T-EIA fell 5.3 million barrels in the week to September 7 to 396.2 million barrels, the lowest since February 2015 and about 3 percent below the five-year average for this time of year, the U.S. Energy Information Administration (EIA) said on Wednesday.

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