Oil slips on supply disruptions, sanctions

Oil rises further above $67 as OPEC cuts counter economic concern

Economic Slowdown Pushes Down Oil Prices

Oil extended losses in NY, with West Texas Intermediate futures dropping 1.7 per cent to US$58.40 a barrel as of 8:41 a.m. local time.

USA crude inventories have drawn down for two straight weeks, slumping almost 10 million barrels in the latest EIA report. It's the second time this year he has urged the cartel to backtrack on its current policy of cutting production.

Global benchmark-Brent crude oil futures were at $66.56 per barrel at 0410 GMT, down 47 cents, or 0.7%, from their last close, while U.S. West Texas Intermediate (WTI) futures were at $58.52 per barrel, down 52 cents, or 0.9%, from their previous settlement. "Thank you!" Trump tweeted.

USA crude inventories are forecast to have fallen by 2.4 million barrels in what would be a third straight weekly decline.

Demand concerns on the back of economic jitters linked to the U.S. American sanctions on OPEC members Iran and Venezuela have also propped up prices.

Overall, bullish sentiment underpins the market, which has seen Brent rise nearly 25 percent this year.

Oil prices dropped yesterday as concerns of a sharp economic slowdown outweighed supply disruptions from OPEC's production cutbacks and USA sanctions on Iran and Venezuela.

Oil prices have found support from efforts by the OPEC and non-affiliated allies like Russian Federation, known as OPEC+, to trim output as well as plummeting Venezuelan output.

The surge in imports came as the OPEC kingpin producer boosted its share of the Asia market, signing new 2019 term supply contracts with Chinese refiners including Sinochem-Hengli and Rongsheng among others, said Mark Tay, senior analyst for crude oil with Thomson Reuters Supply Chain and Commodities Research, in a note.

Venezuela's main oil export port of Jose and its four crude upgraders have been unable to resume operations following a massive power blackout on Monday, the second in a month, according to industry workers and a union leader close to the facilities.

The reasons for the slippage included a lack of progress in U.S.

In early May, analysts expect the United States will extend some sanction waivers on Iranian oil but might reduce the number of countries receiving them.

The 180-day exemptions were granted in November to China, India, Greece, Italy, Taiwan, Japan, Turkey and South Korea.

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