Oil falls as concern grows over Chinese refinery demand

Oil rallies as Iran sanctions kick in

Oil rallies as Iran sanctions kick in

"The ability of gasoline to hang in there despite strong demand weighed on the market", said John Kilduff, a partner at Again Capital Management in NY.

OIL: Oil prices extended their declines after a sharp fall the previous session. China, which is already in the midst of a trade tirade with Washington has refuted the USA sanctions on Iran.

That's all occurring as global oil investors are grappling with doubts over how demand will be affected by flaring trade tensions between the USA and China, the prospect of lower exports from Iran due to American sanctions, uncertainty about Saudi Arabia's output strategy and a fall in stockpiles at the storage hub in Cushing, Oklahoma.

"Without the extra Saudi oil we had in June, it's hard to crunch the numbers and get a lower price going into the end of the year", said John Kilduff of Again Capital. However, July imports still ranked as the third lowest monthly level this year, Reuters reported. This is something that the market desperately needed, after getting slammed the previous day. Global benchmark Brent crude was trading at $74.44 a barrel at 12:32 p.m. EDT (1644 GMT).

As part of its most recent retaliation against Washington in the mounting trade dispute, China will impose tariffs of 25 percent on a further $16 billion in USA imports, which will affect trade in goods from fuel and steel products to autos and medical equipment.

Oil prices dropped nearly 4 per cent yesterday amid deepening concerns over the US-China trade war and continued signs of a slowdown in Chinese energy demand.

The reimposed sanctions target Iran's USA dollar purchases, metals trading, coal, industrial software and its auto sector.

Furthermore, oil prices were dragged down by the increasing output of the Organization of the Petroleum Exporting Countries (OPEC) and Russian Federation.

Productora de "Una mujer fantástica" hará cinta sobre Aléxis Sánchez
Además, será producida por Juan de Dios Larraín y Pablo Larraín y el guión estará a cargo de Josefina Fernández. El futbolista también actuará en el largometraje, y se interpretará a si mismo.

Exxon Mobil Corp. (NYSE: XOM) traded down about 0.8%, at $80.62 in a 52-week range of $72.16 to $89.30.

French bank Societe Generale said that while there was now "comfortable supply in the physical crude markets..."

Gasoline exports edged up 75,000 b/d to 588,000 b/d, while distillate exports slipped 51,000 b/d to 1.23 million b/d.

U.S. President Donald Trump tweeted that the sanctions were "the most biting sanctions ever imposed".

The August total is also likely to be just above the 9.65 million barrels imported over the first seven months, showing the scale of acceleration in India's imports of United States crude.

Crude has struggled to gain near $70 this month after retreating from the highs of June as the U.S. and China showed no sign of backing down from the trade fight, raising concerns over global economic growth. Refinery utilization rates rose by 0.5 percentage point.

Analysts expect Iranian exports to drop by anything between 500,000 and 1 million b/d after full United States sanctions are re-imposed on November 5.

Noticias recomendadas

Nos complace brindar esta oportunidad para compartir información, experiencias y observaciones sobre lo que está en las noticias.
Algunos de los comentarios se pueden reimprimir en otras partes del sitio o en el periódico.
Gracias por tomarse el tiempo para ofrecer sus pensamientos.