Iran Minister Describes as Ruinous OPEC Agreement

Oil prices fall amid surprise growth in U.S. crude stocks

Oil prices fall amid surprise growth in U.S. crude stocks

President Donald Trump on Thursday once again tweeted his belief that major oil producers in the Middle East are conspiring to keep oil prices high, seemingly threatening to withdraw military resources from the region if producers do not help to lower prices.

If we can break above the $3.00 level, then I think the market could continue to go higher, but this area right here is very resistive, and I think that the market will more than likely continue to struggle to break above that region.

Over the past four years, changes to USA crude oil transportation infrastructure and the fluctuations in the Brent-WTI spread have resulted in refiners in the East Coast receiving the highest crude volumes by tanker and barge from the Gulf Coast since 2014, while crude by rail shipments from the Midwest have slumped 77 percent from the late-2014 peak, the EIA said in an analysis on Thursday. Please read our before commenting.

Brent futures gained 36 cents a barrel to $79.39.

US crude oil stockpiles fell 2.1 million barrels in the week to September 14 to 394.1 million barrels, the lowest level since February 2015, EIA data showed.

Iran, for example, has indicated it is happy with oil at $80 per barrel, so would presumably oppose a production increase.

Investors also bet that rising output from OPEC and other members may not be adequate to address shrinking supplies from Iran.

At 0812 GMT, November WTI Crude Oil is trading $71.06, up $0.29 or +0.41% and December Brent Crude Oil is at $78.96, up $0.04 or +0.05%.

Markets Insider
Markets Insider

Outside the USA, dealers are focusing on the effect of the US sanctions against Iran since the sanction targets oil exports from November.

Trump has consistently complained that oil prices are too high, following a significant uptick in prices which has been passed on at the pump to USA drivers.

Oil prices extended gains for a third day Thursday after the Energy Information Administration (EIA) report on Wednesday showed another drawdown in US inventories and strong USA gasoline demand.

It is unclear how easily other producers, such as Saudi Arabia, Iraq and Russian Federation, can compensate for lost supply.

Iran gradually increased its oil exports in 2016 and 2017 after its nuclear deal with world powers was implemented in January 2016 and its oil (including gas condensate) export revenues increased by 45% year-on-year in 2017, higher than the OPEC's average.

The market reversed course after a source told Reuters that OPEC and its allies were discussing the possibility of raising output by 500,000 barrels per day.

Consider that in 2010, the United States was only producing about half of the 11 million barrels per day it reached in July of this year.

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I go through this with them every single day in D.C.", Trump first tweeted , adding, " I have no doubt that, if the attack on Dr. Ford says she wants to appear, but has issued a series of conditions that Conway said Friday sound more like demands.

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