Published: Mon, October 22, 2018
Money | By Hannah Jacobs

U.S. oil edges up after 3 percent drop on big stock build

U.S. oil edges up after 3 percent drop on big stock build

At the most basic level, the policy failed to achieve its stated objective of changing US support for Israel or forcing Israel to withdraw from the occupied Palestinian territories. Ten thousand people have been killed and millions displaced, and it might lead to the worst starvation in a century.

While Trump has repeatedly demanded that OPEC take action to lower oil prices, he considers Saudi Arabia an ally and reiterated on Wednesday that the kingdom agreed to buy $110 billion in USA weaponry a year ago. Washington should take the opportunity to undo this bad complicity by withdrawing logistical and intelligence support. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World. Trump has an opportunity to rebalance his regional policy in the coming weeks. In November it will be clear how much Iran will lose in the market because of the sanctions, although it's hard to imagine a full halt of Iranian shipments by Nov. 4, the date the sanctions will go into full effect.

The US dollar index that tracks the US dollar against a basket of the other currencies edged up 0.06 percent to 95.41 on Thursday and reached a fresh one-week high.

Crude futures came off one-month lows in early trading as USA stock markets bounced.

Iran, the world's fifth biggest oil producer, exported about 2.5 million barrels of oil per day during the first half of 2018.

A conflict between the USA and Saudi Arabia could be devastating for the oil market.

Birol believes that Saudi Arabia can increase production to around 11 million barrels a day.

An unnamed source from the National Iranian Tanker Company (NITC) told Reuters on Friday that the firm had been shipping over 20 million barrels of oil to China's northeastern port of Dalian.

Meanwhile, Iranian oil exports may have increased in October when compared to the previous month as buyers rush to lift more cargoes ahead of looming USA sanctions that kick in on November 4.

On the other hand, Trump could opt to take a middle ground in an effort to prevent oil and gasoline prices spiking ahead of the midterm elections. This is simply because of the sheer volume of the crude from Saudi.

Crude jumped earlier this month as uncertainty persisted over whether the Organization of Petroleum Exporting Countries and its allies can offset supply losses from Iran after sanctions start in November.

During 2017, Iran was Turkey's top crude oil source, accounting for 11.5 million tons of its total purchases nearing 26 million tons, followed by Iraq and Russian Federation.

Rising supplies, particularly at Cushing, Oklahoma, the delivery hub for WTI, pushed the market into contango, in which nearby prices trade lower than forward prices.

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