China, Iran work on logistics changes ahead of sanctions

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The worldwide benchmark for crude oil, Brent International's futures contract for October delivery was trading at $72.60 per barrel, which was an increase of $0.39 cents.

Negative pressure on the price of oil could emerge from decisions by the office of the U.S. Trade Representative, which has scheduled hearings this week on additional trade pressure on China.

In US oil markets, a decline in commercial crude inventories provided WTI with stronger support than Brent. "This is largely due to a tightening fundamental outlook on the back of looming Iranian supply shortages", said Stephen Brennock, analyst at London brokerage PVM Oil Associates.

"As the USA continues to mount pressure on its allies to prescribe to unilateral sanctions on Iran, Iran's major energy customers, including China and India, have indicated their defiance to the US's request", law firm Zaiwalla and Company Managing Partner said in a statement.

Higher refinery input for the time of the year was a major reason behind the large draw in crude oil inventories despite lower crude oil exports.

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Earlier on Saturday, Putin attended the wedding of Austria's Foreign Minister Karin Kneissl in the small town of Gamlitz. Both Russia and Germany have been affected by U.S. tariffs, while Moscow has also been hit by sanctions.

The strength of the greenback has an inverse relationship to the price of crude oil.

Still, a trade standoff between the USA and China that could imperil global economic growth and weaken energy demand continues to weigh on crude prices after negotiations in Washington this week failed to progress.

Around one hour after the report was released, West Texas Intermediate (WTI) October delivery traded at 67.40 US dollars at New York Mercantile Exchange, up 1.56 dollars or 2.37 percent from its Tuesday settlement.

On the supply side, the decision by the Organisation of the Petroleum Exporting Countries (Opec) to increase output again to compensate for production losses in Iran and Venezuela is already taking effect, with the group adding more than 300,000 barrels in the last month. For this month so far, Brent is trading at a premium of $6.73 on the West Texas Intermediate. Reports that China will increase infrastructure spending also helped reduce concerns that U.S.

U.S. commercial crude oil inventories fell by 5.8 million barrels in the week to August 17 to 408.36 million barrels, the Energy Information Administration (EIA) said on Wednesday.

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