Oil drops 1.6%, settling at $72.94, after rise in U.S. crude stockpiles

Saudi Arabia's Minister of Energy Industry and Mineral Resources Khalid Al Falih speaks during a press conference with his Russian counterpart Alexander Novak at the Ritz Carlton Hotel in the capital Riyadh on Feb. 14 2018

Saudi Arabia's Minister of Energy Industry and Mineral Resources Khalid Al Falih speaks during a press conference with his Russian counterpart Alexander Novak at the Ritz Carlton Hotel in the capital Riyadh on Feb. 14 2018

August West Texas Intermediate crude, the US benchmark, on the New York Mercantile Exchange, fell 55 cents, or 0.8 percent to $72.39 a barrel. The Trump administration's initial announcement that the USA expects all Iranian oil imports to stop within just four months roiled markets across the world and set even American allies on edge. "Looming U.S. sanctions on Iran, however, are causing serious concerns amongst market players".

Brent crude futures LCOc1 were at $77.78 per barrel at 0137 GMT, down 46 cents, or 0.6 percent, from their last close.

Recent price rises have also been spurred by a US announcement that it plans to re-introduce sanctions against Iran from November, targeting oil exports.

NAB said its oil price forecasts "point to Brent spending the next few months largely in the mid-to-high $70s (per barrel) range, although meaningful OPEC-Russia output increases could push prices lower later in the year and higher United States shale production should impose an upside limit on WTI".

"The more that Saudi Arabia adds to the market, the less of a supply cushion we have - that's a bullish twist to a bearish development", said Yawger at Mizuho.

Trump urged Saudi Arabia to pump more oil.

.

U.S. crude inventories probably declined by 5 million barrels last week, according to a Bloomberg survey. The American Petroleum Institute, an industry body, was said to report that stockpiles fell by 4.51 million barrels.

"The OPEC Monopoly must remember that gas prices are up & they are doing little to help", Trump wrote on his personal Twitter account.

In response, Iranian oil official Hossein Kazempour Ardebili said that Trump should stop tweeting because his statements have pushed oil prices up by about US$10 a barrel, according to Oil Ministry news service, Shana. "Because the oil market is already in tight supply due to the numerous outages, this would drive worldwide prices (Brent) further up", Commerzbank said in a note.

Oil fell on Thursday after USA government data showed an unexpected build in crude oil stockpiles.

The EU, once Iran's biggest oil importer, has promised to try keep the 2015 nuclear deal alive without the United States by trying to keep oil and investment flowing.

US tariffs on $34 billion in Chinese imports took effect as a deadline passed on Friday and Beijing has vowed to respond immediately in kind, setting the two world's biggest economies on a path toward a full-blown trade conflict.

Recommended News

  • Immigration top issue for US voters, economy a close second: Reuters/Ipsos poll

    Immigration top issue for US voters, economy a close second: Reuters/Ipsos poll

    Bernie Sanders dodged the question, saying only that he wanted to "create policies that deal with immigration in a rational way". Victims tend to be members of the immigrant community, rival gang members or individuals who spurned the gang.
    Mohamed Salah becomes top earner with latest deal

    Mohamed Salah becomes top earner with latest deal

    The Egyptian winger, who had a record-breaking debut season with the Merseyside club, signed a new contract until 2023 this week. The Egypt worldwide netted 10 times in the Champions League to help Liverpool FC reach the European showpiece in Kiev.
    Sung Hyun Park wins Women's PGA Championship in playoff

    Sung Hyun Park wins Women's PGA Championship in playoff

    The two-time major champion from South Korea posted one of the few sub-par rounds in the morning at the Kemper Lakes course. She had to hit a flop shot standing inches from the water, with the ball nestled under the high grass around the lake.
  • LeBron James leaves Cleveland again

    LeBron James leaves Cleveland again

    It's unclear what role he'll fulfil on the team with question marks now being raised about Lonzo Ball's future with the Lakers. The four-year return of James, with the addition of a championship, caused Cleveland's economy and pride to skyrocket.
    World Cup coach debacle sees Spain go back to the 'dark ages'

    World Cup coach debacle sees Spain go back to the 'dark ages'

    Iniesta, who struggled physically in recent years, converted Spain's first penalty in the shootout with what was his last ever shot at a World Cup .
    Durant, Paul to re-sign with teams

    Durant, Paul to re-sign with teams

    But Ariza was a major, major reason the Rockets were able to push the Warriors as far as they did in the conference finals. His current $5 million per year salary didn't even make him among the 10 highest-paid coaches before the season began.
  • Wimbledon 2018: Roger Federer & the Williams sisters progress on day three

    Wimbledon 2018: Roger Federer & the Williams sisters progress on day three

    The ninth-seeded American had struggled in the opening set of her first-round match with Johanna Larsson, but roared back to win. Wimbledon's commercial director has no issues with Roger Federer pulling off a marketing coup on Centre Court.
    Roger Federer serves up flawless win over Lukas Lacko at Wimbledon

    Roger Federer serves up flawless win over Lukas Lacko at Wimbledon

    After the 36-year-old American won the 2017 Australian Open, five different players won the next five women's majors. Serena Williams progressed into the third round with a dominant straight-set win over Bulgaria's Viktoriya Tomova.
    Merkel gives in: German chancellor agrees to tighten immigration policies

    Merkel gives in: German chancellor agrees to tighten immigration policies

    German politicians who criticized the agreement say Merkel and her conservatives had abandoned the country's moral mission. One possibility is for the 70-year-old CDU and CSU alliance to split which would rob Merkel of her parliamentary majority.
  • United States  should throw China out of the WTO: Peter Morici

    United States should throw China out of the WTO: Peter Morici

    At the same time, Beijing is reportedly pressing the European Union to form an anti-U.S. pact against Trump's trade policies. Elliott Gabriel is a former staff writer for teleSUR English and a MintPress News contributor based in Quito, Ecuador.
    Is This Samsung’s Galaxy Tab S4 Launching At IFA 2018?

    Is This Samsung’s Galaxy Tab S4 Launching At IFA 2018?

    Galaxy On6 can also be purchased through exchange offers going up to Rs 12,200, and a 5% discount on Visa debit and credit cards. The smartphone is priced at Rs 14,490 and will be available starting July 5 exclusively via Flipkart and Samsung's e-store.
    Trump Orders U.S. Flags Lowered To Honor Slain Journalists

    Trump Orders U.S. Flags Lowered To Honor Slain Journalists

    Ramos waged a long legal battle with the paper over a column it published about him, and his lawsuit was eventually dismissed. He was remembered for his love of family and enduring pride in his job. "These guys, they don't make a lot of money".

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.