Published: Mon, July 09, 2018
Money | By Hannah Jacobs

US Crude Oil Price Rise Still Possible Once Consolidation Period Ends

US Crude Oil Price Rise Still Possible Once Consolidation Period Ends

"Gas prices are up & they are doing little to help", he complained again on Twitter on July 4. S. defends many of their members for very little dollars.

"This must be a two way street", his latest statement read.

Such a move by Beijing-which appears more likely with this latest round of tit-for-tat tariffs-threatens to limit USA crude oil exports to China that have been gaining pace in recent months and eating into OPEC's share in the market-a market that is setting the pace of global oil demand growth.

Oil was mixed on Friday as a Canadian supply outage supported US crude prices, while an increase in production from OPEC's biggest exporter Saudi Arabia pushed Brent lower.

OPEC, together with a group of non-OPEC producers led by Russian Federation, reduced output in 2017 to prop up the market.

Ardebili's accusations came as oil prices have surged in recent months.

Trump's pressure on OPEC comes just as key oil exporters were boosting output, which has been curtailed since 2016 to boost prices. But U.S. allies aren't on board with Trump's planned sanctions on Iran.

Even with Saudi Arabia offering market assurances, concerns about dwindling spare capacity could push oil prices above $80 per barrel, Swiss bank UBS said.

Oil was mixed on Thursday, with United States crude slipping and Brent futures little changed after data showed an unexpected build in U.S. crude oil stockpiles. For many households, the gains from cuts passed previous year have been offset by the rise in oil prices since 2016.

While trade concerns may be partly responsible for the decline, the industry was surprised to learn this week that oil stockpiles in the USA are getting larger, not smaller.

The sanctions would include a universal ban on Iran over buying or acquiring U.S. dollars as well as restrictions over purchases of crude oil from the country and investing in its oil sector projects.

Ardebili also told Trump, "You are hammering on good guys in OPEC".

Inventories at Cushing, Oklahoma, the delivery point for US crude futures, fell to their lowest level since December 2014.

Looming U.S. sanctions on Iranian crude exports, force majeure in Libya and unplanned pipeline outages in Nigeria have been clouding the supply outlook despite rising output by the Organization of the Petroleum Exporting Countries.

China has indicated that it could place a tariff of 25 percent on USA oil.

According to Commerzbank, OPEC now has just enough oil to meet global demands without Iran's supply. "Since when did you start ordering OPEC", he said, according to Shana. An Iranian Revolutionary Guards commander warned that Iran might blockade the narrow, strategic Strait of Hormuz if Trump stopped oil exports, a move some considered unlikely since Iran's own imports pass through the Strait.

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