Crude Oil Futures: Oil Prices Extend Increase
- Oil prices have increased as the US crude inventories fell on Wednesday
- The surge in oil prices was amid the disappearance of a prominent Saudi journalist
- ‘It’s a political bluff,’ said NIOC Head regarding the US reduction to the oil exports of Iran to zero.
CRUDE OIL FUTURES – On Wednesday, oil prices increased into the fourth session lifted by the sudden drop in US crude inventories as reported by the industry data. This is amid the geopolitical tensions over the disappearance of a prominent Saudi journalist that fueled worries on supply.
As of 0648 GMT on Wednesday, the US West Texas Intermediate Crude increased 25 cents, or 0.4 percent, at $72.17 a barrel, settled up 14 cents.
Meanwhile, Brent crude surged 26 cents or 0.3% at $81.67 a barrel following its 63 cents settle into the previous session. Last week, the global market benchmark recorded lows for more than two weeks on the decline of equity markets. Further, it is trading $5 below a four-year high of $86.74 marked on October 3.
In the previous week, the US crude inventories declined 2.1 million barrels in contrast to the forecast of analysts for a build of 2.2 million barrels. This was according to the data released by the American Petroleum Institute after the settlement on Tuesday.
“The market is reacting to the unexpected decline as inventories tend to rise at this time of year,” said Senior Economist Tomomichi Akuta Mitsubishi of UFJ Research and Consulting in Tokyo.
In addition, Akuta said that the anxieties concerning the outlook for the global economy were capping gains.
Based on the API data, there was a decline of larger-than-expected 3.4 million barrels in the gasoline stocks of the United States. Meanwhile, there was a smaller-than-expected 246,000 barrels drop in the distillate fuel stockpiles.
Energy Information Administration’s inventory data from the US Energy Energy Department is due on Wednesday at 1430 GMT.
US President Donald Trump gave the benefit of the doubt to Saudi Arabia regarding the recent disappearance of Jamal Khashoggi. This is despite the accusation of US lawmakers at the Saudi leadership and escalating pressure of Riyadh in providing answers.
Saudi Arabia has vowed for a complete investigation regarding the said incident. This was according to US Secretary of State Mike Pompeo before he left the kingdom of Turkey.
Crude Oil Futures: NIOC Head says US reduction to Iran’s oil exports to zero is a ‘political bluff’
The state-run National Iranian Oil Company (NIOC) Head said that the United States’ claim of reducing the Iranian oil exports to zero is a “political bluff.” This was according to Tasnim news agency on Wednesday, citing the statement of the NIOC head.
According to the US officials, their goal is to lessen the oil exports of Iran to zero in an attempt to encourage the leaders of the country in changing their behaviors in the region. The US sanctions on Iranian oil exports will be implemented starting on November 4.
“Trump started efforts to reduce Iran’s oil exports from months ago and it’s not like we should think that he will do something special on November fourth. The president of America has done whatever he can and he knows very well that getting Iran’s oil exports to zero was a political bluff,” Kardor said.
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