Mexico



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Oil falls Monday as supplies from Saudi Arabia and Russia rose

By Christopher Johnson

LONDON
Petroleumworld 07 02 2018

Oil prices fell on Monday as supplies from Saudi Arabia and Russia rose while economic growth stumbled in Asia amid an escalating trade dispute with the United States.

Benchmark Brent crude oil LCOc1 fell $1.24 a barrel to a low of $77.99 before recovering to $78.40, down 83 cents, by 0735 GMT. U.S. light crude CLc1 was 50 cents lower at $73.65.

Oil prices rose strongly last week, with the U.S. crude contract hitting its highest in 3-1/2 years at $74.46.

But a flurry of U.S. announcements over the weekend unsettled oil markets.

U.S. President Donald Trump tweeted on Saturday that Saudi Arabia's King Salman bin Abdulaziz Al Saud had agreed to pump more oil, “maybe up to 2,000,000 barrels”. The White House later walked back on the comments.

Saudi Arabia's output is up by 700,000 barrels per day (bpd) from May, a Reuters survey showed, and close to its 10.72 million bpd record from November 2016.

Russian output rose to 11.06 million bpd in June from 10.97 million bpd in May, the Energy Ministry said on Monday.

U.S. production C-OUT-T-EIA has soared 30 percent in the past two years, to 10.9 million bpd, meaning the world's three biggest oil producers now churn out almost 11 million bpd each, meeting a third of global oil demand.

Also weighing on oil demand are trade disputes between the United States and other major economies including China, the European Union, India and Canada.

Asia's main economic hubs of China, Japan and South Korea reported a slowdown in export orders in June amid escalating trade disputes with the United States.

“Recurring salvos in the trade war and falling asset prices raise the question of how much tariffs could damage the global economy,” U.S. bank JPMorgan said.

The bank said a “medium-intensity (trade) conflict would likely reduce global economic growth by at least 0.5 percent, “before accounting for tighter financial conditions and sentiment shocks”.

Despite the relief from Saudi Arabia and Russia, oil markets remain tense because of unplanned outages from Canada to Venezuela and Libya.

Looming U.S. sanctions against Iran further contribute to expected tightness.

Trump threatened in an interview that aired on Sunday to put sanctions on European companies that do business with Iran.

“The Trump administration's plan for Iran sanctions is now abundantly clear. They seek to push Iranian exports of crude, condensate, and oil products to zero,” energy consultancy FGE said in a note.

_________________________

Twitter: @petroleumworld1


Petroleumworld.com


Hit your target - Advertise with Us

Story by Christopher Johnson;Additional reporting by Henning Gloystein in Singapore and Osamu Tsukimori in Tokyo; Editing by Dale Hudson from Reuters.

reuters.com
07 02 2018 11:14 GMT

We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1


November 13 - 15, 2018.

Gubkin University, Moscow
SPE Student Chapter

 

 

 

 

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.