Crude oil slips 36 cents after surge in U.S. crude inventories

Суббота, 26 Мая, 2018

Petrol and diesel have surged on the back of rallying worldwide markets for crude oil, amid ongoing production cuts led by the Organization of the Petroleum Exporting Countries (OPEC).

Whether it's the specter of sanctions on Iran, Venezuela's output plunge, or a momentum play on the back of the past year's 46-per-cent surge in Brent, there are now the equivalent of about 93 million barrels wagering on the global benchmark hitting $100 at some point in the next 12 months.

Beyond Venezuela's production woes, geopolitical concerns that US sanctions on Iran could curb the country's crude exports have led prices to trade higher in recent weeks.

Supply concerns in Iran and Venezuela following new United States sanctions had pushed both Brent and WTI to multi-year highs, with Brent breaking through a $80 threshold last week for the first time since November 2014.

The U.S. government imposed new sanctions on Venezuela following Sunday's re-election of President Nicolas Maduro. USA crude futures were trading at around r$69 per barrel, while Brent crude was worth about $77 per barrel. High prices always begin to temper the world's appetite for oil at some stage, thus ultimately begetting lower prices.

US crude futures fell 36 cents, or 0.5%, to $71.84 a barrel, on the New York Mercantile Exchange.

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OPEC began discussing an ease of production restrictions following a critical tweet from Trump, according to the cartel's Secretary-General Mohammed Barkindo.

WTI (oil futures on NYMEX) extends its losing streak into a fourth-day today, as rising worries over the latest report that the OPEC and non-OPEC producers are considering increasing the output by 1 mln bpd, adds to the ongoing sell-off in oil.

In addition, the United States plans to reimpose sanctions on major oil producer Iran, while an economic crisis has decimated Venezuela's crude output.

London:The rise in oil prices to $80 a barrel is starting to cause concern across boardrooms, with some big industrial consumers, including airlines and shipping companies, starting to buy more insurance against rising energy prices.

In April, Valero received 13 cargoes of Venezuelan crude for its U.S. Gulf refineries compared with nine cargoes imported by Citgo Petroleum, according to the Reuters data.

Russian Federation and other members of the OPEC-led coalition of oil producers are broaching the possibility of easing output limits at a time when American shale drillers are pumping record amounts of crude.