Thursday , November 15 2018
Home / Commodity Blog / Crude Oil Rebounds After Declining on Saudi Arabia Supply

Crude Oil Rebounds After Declining on Saudi Arabia Supply

Summary:
Prices for crude oil dipped during the Monday’s trading session but rebounded later. The decline was a reaction to the statement from Saudi Arabia’s Energy Minister Khalid al-Falih that his country will not implement embargo on Western countries similar to the one that happened in 1973. In fact, Saudi Arabia is planning to increase its oil output. The rebound of oil prices was probably a result of the statement from Iranian Oil Minister Bijan Zanganeh that exports from Saudi Arabia and Russia will not be able to replace Iranian supply lost due to the US sanctions. The minister said: As I have repeatedly said there is no replacement for Iranian oil in the market. Saudi Arabia and Russia’s output is near their highest level ever and they have no spare capacity to pump more to replace Iran’s

Topics:
Vladimir Vyun considers the following as important:

This could be interesting, too:

Jeffrey P. Snider writes Approaching the Point of No Return?

Lance Roberts writes Technically Speaking: Major Markets Are All Flashing Warning Signs

Mary Hogan writes In the LOOP: Q3 Louisiana crude imports fall even as refinery input rises

Marc Chandler writes Sterling’s Losses Lead Dollar Rally

Prices for crude oil dipped during the Monday’s trading session but rebounded later. The decline was a reaction to the statement from Saudi Arabia’s Energy Minister Khalid al-Falih that his country will not implement embargo on Western countries similar to the one that happened in 1973. In fact, Saudi Arabia is planning to increase its oil output.

The rebound of oil prices was probably a result of the statement from Iranian Oil Minister Bijan Zanganeh that exports from Saudi Arabia and Russia will not be able to replace Iranian supply lost due to the US sanctions. The minister said:

As I have repeatedly said there is no replacement for Iranian oil in the market. Saudi Arabia and Russia’s output is near their highest level ever and they have no spare capacity to pump more to replace Iran’s oil.

Yet many market analysts were skeptical about that, especially as the United States were increasing production. Baker Hughes reported that the number of US oil rigs increased by 4 last week — the second weekly increase in a row.

Futures for delivery of WTI crude oil in November edged up a bit by 0.07% to $69.17 per barrel as of 19:39 GMT on NYMEX today. December contract for Brent crude advanced 0.36% to $80.07 per barrel on ICE.

If you have any questions and comments on commodities today, use the form below to reply.


Commodity Blog, 2018. | Permalink | No comment | Add to

Better Feed from Ozh

Vladimir Vyun
Vladimir is an online journalist with background in computer science and work experience in pension funds. He contributes news reports, fundamental analysis and sentiment forecasts to TopForexNews.com and CommodityBlog.com. His main specialization is the currencies of emerging economies and inter-market correlations with commodity and bond trading.

Leave a Reply

Your email address will not be published. Required fields are marked *