Crude palm oil futures gain 0.27%

06 August, 2018, 11:32 | Author: Corey Lynch
  • Here are the latest oil production numbers from the EIA. All data is in thousand barrels per day unless otherwise noted

Official data from Russian Federation on Thursday showed that the country's oil output rose by 150,000 barrels per day (bpd) in July from June to 11.21 million bpd. The return of sanctions on Iran was one of the reasons why the experts raised again-for a tenth consecutive month-their oil price forecasts for WTI Crude and Brent Crude prices, which are now expected to average $67.32 a barrel and $72.87 a barrel this year, respectively.

US West Texas Intermediate (WTI) crude futures were at $68.70 a barrel at 8.47am GMT, down 26c from their last settlement.

Analysts said widening of positions by participants amid pick up in spot demand against tight stocks position on restricted supplies from overseas markets mainly kept crude palm oil prices higher at futures trade.

Even with last week's rise, overall USA crude inventories are below the 5-year average of around 420 million barrels.

Saudi Arabia told OPEC that it pumped 10.488 million bpd of crude oil in June, an increase of 458,000 bpd from the production figure it submitted for May.

Saudi Arabia, Russia, Kuwait and the United Arab Emirates have increased production to help to compensate for an anticipated shortfall in Iranian crude supplies once planned US sanctions take effect later this year. "Yet, we remain much more concerned about the ongoing USA sanctions on Iran", analysts at Bank of America Merrill Lynch said in a research note published last week.

"At the moment, there is a mismatch in timing, where there is increasing OPEC supply and yet we're not seeing a significant reduction in Iranian supply", Patterson said.




Oil prices are also feeling the effects of tensions over global trade, which could cause economic growth to slow.

"It is unclear that the higher tariffs proposed by the Trump Administration will ever be imposed and if they are that they will have a major detrimental impact on oil demand", Flynn said.

China's International United Petroleum and Chemicals (Unipec) has also suspended purchases of USA crude amid the growing trade row, sources said.

According to two officials, the US hasn't been able to persuade China to reduce Iranian oil purchases, but Beijing has reportedly agreed not to increase its oil imports from Iran, Bloomberg reports.

US President Donald Trump's decision to pull out of an global nuclear deal and reimpose sanctions on Iran has angered Tehran.

“There are a lot of escalation points that could occur very quickly and that worries me, ” Barratt said. After Trump called for a 15 percent increase in tariffs on Chinese goods earlier this week, Beijing on Friday announced it was targeting $60 billion worth of US goods in response.

Crude oil futures remained relatively stable in European morning trading, following yesterday's rally of more than $1/b, as the market held up against short-term bearish factors that continue to weigh on sentiment.

Recommended:



Popular

Yemen rebels announce temporary Red Sea ceasefire
The Saudi-led coalition denied responsibility for the attack, saying it did not carry out any operations in the area that day. He called for "an immediate ceasefire" and urged Yemen's warring parties to join United Nations peace efforts.

Saudi Arabia asks Canadian ambassador to leave
The Kingdom of Saudi Arabia expresses its absolute and categorical rejection of the position of the Canadian Government. More than a dozen women's rights activists have been targeted since May.

Trump "needs to put a pin in that", says panelist
Special Counsel Robert Mueller is investigating U.S. intelligence findings that Russians conspired to sway the election in Mr Trump's favour.

India v England, 1st Test: Day Two in pictures
Earlier, India dismissed England for 180 in their second innings, with fast bowler Ishant Sharma taking five for 51 in 13 overs. Following scans on Thursday, England have confirmed Jos Buttler did not suffer a fractured finger in the morning session.

Chelsea Force Real Target To Stay After Rejecting £31m Bid
Other options for a possible Courtois replacement include Stoke's Jack Butland, Kevin Trapp of PSG, and veteran Pepe Reina. Sarri improved all of Napoli's front-line during his time at the Stadio San Paolo. "We have to improve, of course".

Trump Receives Letter from North Korea's Kim
About 7,700 US soldiers are listed as missing from the conflict, and 5,300 of the remains are believed to still be in North Korea. Experts say that the painstaking identification process could take anywhere between days to decades to complete.

OIL BAN: Trump says he’s willing to meet with Iran’s President Rouhani
If they want to meet, I'll meet anytime they want, anytime they want ", he said. Iranian officials reacted sceptically to the statement.

Ruling party Zanu-PF wins majority of parliamentary seats in Zimbabwe election
An opposition supporter hold his hands up after being sprayed with a water canon and in clouds of teargas on a street in Harare. In the capital Harare many people went about their usual daily grind, including queuing up for scarce cash outside banks.

U.S. detects new activity at North Korea factory that built ICBMs
Satellite photos reportedly show that North Korea continues work on developing intercontinental missile technology. Last Tuesday, Trump said new images signaled that North Korea was beginning to dismantle "a key missile site".

Reham Khan: Imran Khan Is "More Focussed On The Prize"
He has begun coalition talks to form the government after his party won 116 of 269 contested seats in the National Assembly. Thanking Modi for his wishes, Imran Khan said that the disputes between the two nations must be settled with dialogue.