Published: Sat, November 10, 2018
Money | By Bruce West

The price of oil fell to spring level

The price of oil fell to spring level

He said the US has evidence that Iranian vessels are trying to evade USA sanctions by disabling location transponders used to prevent collisions. "We have worked with the Saudis, the Emiratis, and other producers to make sure production is up so that historic buyers of Iranian oil are not disadvantaged", he added.

"We have seen the United States notification including India in the list of countries granted Significant Reduction Exemption for continued purchase of Iranian crude oil without attracting U.S. sanctions", Ministry of External Affairs' (MEA) Spokesperson Raveesh Kumar said.

"The market's not tight". "The reality is that we're still in a world where we're overproducing and we've got surplus". The contract fell 1.6 per cent to $60.67 on Thursday, and is headed for a 4 per cent decline on the week - its fifth consecutive decrease.

The Financial Times on Friday reported more crude oil could also be coming from Iraq, with a deal close between its federal government and the Kurdistan Regional Government to restart exports from the disputed territory of Kirkuk. The contract touched a almost three-month low of $71.18/Bbl, 17.9% below last month's four-year high of $86.74/Bbl.

Oil markets stabilized on Friday but remained weak as rising supply and concerns of an economic slowdown pressured prices, with USA crude down by around 20 percent since early October.

"Certainly, the waivers on U.S. sanctions for Iranian crude have really accelerated the decline from last month and sensitivity to those issues have been high in recent times", said Daniel Hynes, a Sydney-based senior strategist at Australia & New Zealand Banking Group.

"This means that the price is today a greater solver to the crude oil balance than in the past, when there was no solver apart from the supply policy of Saudi Arabia". Other OPEC members and exporting nations are also turning on the taps.

One analyst predicts that OPEC will begin pulling back on production soon.

"The global gasoline glut reached Singapore this week, where gasoline cracks collapsed". The group agreed in June to restore some of that output, and producers with spare capacity have been pumping more oil since then.

And Saudi production has recently been averaging a record 10.7 million barrels per day. Companies had said they were confident prices would remain strong enough to fuel profits going forward.

"This monitoring committee is important, but it looks like consensus is likely to build around what Russian Federation and Saudi decide, and that gets institutionalized", Malek said.

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