USA oil prices climb amid drop in stockpiles, strong gasoline demand

USA oil prices climb amid drop in stockpiles, strong gasoline demand

USA oil prices climb amid drop in stockpiles, strong gasoline demand

President Trump warned members of OPEC again on Thursday that now is not the time to be greedy or the protection provided by the U.S.to the Middle East could be in jeopardy.

Iran said on Thursday vowed to veto any decision by the Organization of the Petroleum Exporting Countries (OPEC) and its non-member allies seeking to harm Tehran's interests.

Oil prices have increased from around $50 per barrel last September, to more than $70 per barrel today, with a rebalancing of the supply and demand disparity in the market, as well as major weather and geopolitical events playing a part.

"The current market betting line suggests price levels rather than global supply levels will be the key determinant on turning on the oil taps", Innes said.

However, EIA's short-term energy outlook report says Iran's oil exports declined by 19% (about 0.5 million barrels per day) in August.

The rebound gained steam earlier this year after production problems in countries like Venezuela and Libya caused the group to cut more deeply than they intended.


Investors grappled with the Organization of the Petroleum Exporting Countries and non-OPEC producers' ability to offset a shortfall from Iran due to USA sanctions that go into full force November 4.

OPEC, Russia and some of their allies agreed in June to boost production by 1 million barrels per day, after agreeing to a supply-cutting deal since 2017. In the last two weeks, he has also met Novak and his USA counterpart Rick Perry.

According to US Energy Information Administration figures, crude oil inventories fell for the fifth week in a row - diverging from Tuesday's unofficial data published by the American Petroleum Institute.

"Midterm elections are coming up and high oil prices are bad PR for the party heading into the election", said Cook.

If Brent can break resistance at $79.68, it could climb towards $81.06 or even higher, he said, citing wave analysis on price charts. Our outlook on crude oil remains neutral. That's because Saudi Arabia and Russian Federation - the group's two largest producers - have already moved beyond the 2016 deal to cut output, and U.S. President Donald Trump is pushing them to do even more.

Finally, weekly crude production inched back to 11 million bpd, the record high it has been hovering around this summer. Perry credits the two countries with averting a "spike in oil price".

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