Crude oil dips over demand concerns

U.S. zero oil exports a political bluff, says Iran

Crude oil on Wednesday fell towards $75 a barrel to its lowest since late August, pressured by concern that demand is weakening amid ample supply ample as U.S. sanctions loom on oil exporter, Iran.

In a sign supply is plentiful, industry group the American Petroleum Institute said on Tuesday U.S. crude stocks had risen by 9.9 million barrels – more than forecast. The U.S. government’s supply report is due at 1430 GMT.

Brent crude, the global benchmark, was down 80 cents to $75.64 a barrel at 0930 GMT. It fell earlier to $75.11, the lowest since Aug. 24. U.S. crude dropped 17 cents to $66.26.

While U.S. sanctions on Iran which start on Nov. 4 are expected to tighten supplies, other producers, notably top exporter Saudi Arabia, are already pumping more oil and willing to increase further if needed.

Saudi Energy Minister, Khalid al-Falih, said on Tuesday that Saudi Arabia would step up to “meet any demand that materialises to ensure customers are satisfied”.




Do NOT follow this link or you will be banned from the site!