Very usefull links


News links




Dow Jones

Oil price



Views and News




Oil falls Tuesday as Saudi Arabia says it will play 'responsible role'

By Christopher Johnson

Petroleumworld 23 10 2018

Oil prices fell on Tuesday after Saudi Arabia said it would play a “responsible role” in energy markets, although sentiment remained nervous ahead of new U.S. sanctions on Iran's crude exports that start next month.

Benchmark Brent crude oil LCOc1 was down 55 cents a barrel at $79.28 by 0735 GMT. U.S. light crude CLc1 was 35 cents lower at $69.01.

The U.S. sanctions on Iranian oil begin on Nov. 4, and Washington has said it wants to stop all of Tehran's fuel exports.


Saudi Arabia says it will keep markets supplied despite its increasing isolation over the killing of Saudi journalist Jamal Khashoggi, and there are signs that crude exports from the Middle East are rising.

There has been some concern that Saudi Arabia might cut crude supply in retaliation for potential sanctions against it over the Khashoggi killing.

Saudi Energy Minister Khalid al-Falih said on Monday that “there is no intention” to do that, and that Saudi Arabia would play a “constructive and responsible role” in world energy markets.

Economist Intelligence Unit energy analyst Peter Kiernan said it would be self-defeating for Saudi Arabia to cut oil supply as it would “risk losing market share to other exporters while losing its reputation as a stable actor in the market”.

Despite this, Sukrit Vijayakar, director of energy consultancy Trifecta, said “markets are ... wary of the impact of U.S. sanctions on Iran's oil sector”, estimating sanctions “could impact up to 1.5 million barrels per day of supply”.

South Korea's crude imports from Iran fell to zero in September, data from state-run Korea National Oil Corp showed on Tuesday.

JPMorgan said in a note dated Oct. 19 that it raised its 2019 Brent price forecast by $20.50 a barrel to $83.50, saying its “bullish argument is strongly driven by tighter supply due to Iranian sanctions and declining spare capacity”.

Not everyone is so bullish. Shipping brokerage Eastport said crude prices were “expected to decline in coming months, as rising production in the U.S. offsets increasing global demand”.

U.S. crude oil production C-OUT-T-EIA has climbed by almost a third since mid-2016 to around 11 million barrels per day, and rising drilling activity points to further increases.

Reflecting a cautious outlook, traders have been curbing their exposure to oil markets by shutting long positions in crude futures, with fund managers cutting their combined positions by 187 million barrels in the last three weeks, according to exchange and regulatory data.




Story by Christopher Johnson in LONDON, Additional reporting Henning Gloystein in SINGAPORE; Editing by Dale Hudson from Reuters.
10 23 2018
08:58 GMT

Copyright© 1999-2018 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions as the source.

Other stories you have to get authorization by its authors. Internet web links to are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

We invite all our readers to share with us
their views and comments about this article.


Write to

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

Any question or suggestions,
please write to:


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








Editor & Publisher:Elio Ohep/
Contact Email:

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: 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.