oil prices continues to worry traders, but the United States sanctions against Iran - set to take effect on November 4 - are helping to prop up prices, according to a report by Reuters. Saudi Arabia said last week it would retaliate against any punishment for the killing.
China is Iran's biggest oil customer.
The minister reiterated that the market is unable to find a replacement for Iran's oil, urging Trump to abandon his plan to impose sanctions on the country.
OPEC's panel vowed today to continue to monitor oil market fundamentals and compliance "in its efforts to maintain market balance". That would be a bullish sign we break above that but I think there is still plenty of selling pressure above as the 50 day EMA is starting to rollover, and of course we have the psychologically significant $70 level above, so I think it's only a matter time before the sellers come back.
According to Mriganka Jaipuriyar, associate editorial director at S&P Global Platts, oil markets will remain on tenterhooks as there is lack of clarity on Iran's real crude oil export volumes. That's the highest it has been in 3 years and 11 months.
The oil market has been concerned that Saudi Arabia might cut crude supply in retaliation for potential sanctions over the killing of journalist Jamal Khashoggi.
The Joint Ministerial Monitoring Committee (JMMC), which met to review the state of the production cuts pact and the short-term prospects of the oil market, said that its review of the recent market fundamentals showed "a very comfortable supply level relative to demand". The contract rose 39 cents to $66.82 on Wednesday. "We dropped precipitously on the idea global demand is going to slow".
On Tuesday, Zangeneh reiterated Iran's position that neither Saudi Arabia nor Russian Federation can replace Iranian oil. The global benchmark has lost more than $10 a barrel since hitting a high of $86.74 on October 3.
Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.4 million barrels, EIA said. Also, OPEC's September output was 850,000 barrel per day above where it was in May, not including Congo, while Russia's production in September is up 390,000 barrel per day from May, according to Platts survey data.
The WTI crude oil continues to trade bullish despite an unexpected rise in crude oil inventories last week.
The American Petroleum Institute (API) on Tuesday reported a buildup of 9.88 million barrels in the US crude oil inventories for the week ending October 19. EIA also forecast that total global liquid fuels inventories to decrease by 200,000 barrels per day in 2018, followed by an increase of 280,000 barrels per day in 2019. Global gas consumption is growing, he said, and oil demand will reach 120 million barrels a day in 30 years, from 100 million now.