21-10-2018 03:30 PM
Oil prices benefited on Monday as investors stayed watchful ahead of the upcoming U.S. sanctions against Iran’s crude exports.
Referring to an internal document, OPEC is having problems to pump more oil to the market as a new increase in Saudi Arabian supply was balanced by refusal in Iran, Venezuela and Angola.
According to Mr.Sunil Kumar, Market expert and Managing Director at Enrich Commodities - In China, advanced seasonal demand and alleged stockpiling are happening, while in the same way the U.S. and the OECD continue building stockpiles in advance of potential supply disturbance this winter,"
In the interim, U.S. Treasury Secretary Steven Mnuchin said on Sunday that countries longing to get waivers on Iran oil sanctions would have to decrease their buying of Iranian oil by about 20% than the level from 2013 to 2015
He added that “Oil prices have already gone up, so my belief is that the oil market has expected what's going on in the reductions. I deem the information is by nowmirrored in the price of oil,"
Baker Hughes energy services firm said on Friday - The U.S. oil drilling rig count climbed four to 873 last week, the highest since March 2015,.
Saudi Arabia also stayed in focus as Foreign Minister Adel al-Jubeir on Sunday called the killing of journalist Jamal Khashoggi a "huge and grave mistake," but added that Crown Prince Mohammed bin Salman was not conscious of the incident and was not accountable for the killing.
Looking at the forefront, the American Petroleum Institute will circulate its weekly update on U.S. oil supplies on Tuesday, and the U.S. Energy Information Administration will release its weekly report on oil stockpiles on Wednesday.