Global oil demand may suffer as crude nears $80, warns IEA

Oil hits high

It's yet uncertain how much of Iran's supply could be affected under new USA sanctions which have yet to be detailed.

"The only reason why we're not seeing higher prices from here today is the strength of the USA dollar", Tariq Zahir, managing member at Tyche Capital Advisors, told Reuters.

The oil market is set to tighten further as supplies have been constrained by the earlier Vienna pact involving Saudi Arabia-led Opec along with non-Opec Russia to cut output by 1.5 million bpd, resulting in global crude inventories falling to 1 million barrels below a five-year average.

"In these early days, there is understandable uncertainty about its potential impact on Iran's oil exports, which are now about 2.4 mb/d", the IEA noted.

A report by the International Energy Agency on Wednesday warned that the rising price could hit demand.

West Texas Intermediate oil is trading at $72.13, a 0.82% gain.

The sources told Reuters Saeed Khoshrou, director of global affairs at the National Iranian Oil Company (NIOC), held separate meetings in Beijing on Monday with top executives at Chinese oil giant Sinopec's trading unit and state oil trader Zhuhai Zhenrong Corp to discuss oil supplies and seek assurances from the Chinese buyers.

Neil Atkinson, head of the oil industry and markets division at the IEA, told CNBC's "Street Signs" that "the stability of the market" could be at stake.

Cleveland Browns selected for HBO's 'Hard Knocks,' report says
Last year's series featuring the Tampa Bay Buccaneers won a Sports Emmy for "Outstanding Serialized Sports Documentary". The Cleveland Browns will be featured on this year's edition of Hard Knocks on HBO, reports ESPN's Adam Schefter .

Walmart Inc. (WMT) EPS Estimated At $1.13 on May, 17
Walmart announced earlier this month that it was paying $16 billion for majority control of India's online retailer, Flipkart. The firm has "Neutral" rating given on Wednesday, February 21 by UBS. (NYSE: WMT ) has "Hold" rating given by Credit Suisse.

Summit Midstream Partners (SMLP) Now Covered by Analysts at Deutsche Bank
With their stock price now trading around $23.83, the firm has proven a solid track record of growth over the past few years. It is positive, as 78 investors sold KR shares while 251 reduced holdings. 26 funds opened positions while 42 raised stakes.

"European and Asian buyers of Brent are pricing in the risks and realities of the fallout from sanctions on Iran to increased tensions in the Gaza strip, as well as the inability of traditional Brent oil producers to fill that void", said Phil Flynn, senior market analyst at Price Futures Group. The IEA attributes the decline to higher prices that are expected to dampen demand.

India received about 397,200 bpd of oil from Venezuela in April, the highest since September, up about 46.8 percent from a year ago, the data showed. Markets face other disruptions besides Iran, with Venezuela's output plunging to the lowest since the 1950s as its economy unravels. A stronger greenback makes it more expensive to buy dollar-denominated commodities like oil.

Non-OPEC supply this year now is forecast to grow by 1.7 million b/d y/y, with 89% from the United States.

The API reported Tuesday that United States crude supplies rose by almost 4.9 million barrels for the week ended May 11.

The downward trend was supported by data released late Tuesday by the American Petroleum Institute showing USA crude oil inventories increased last week by 4.8 million barrels.

OPEC and its allies are cutting production by about 1.8 million barrels per day, nearly 2% of world supply, until the end of 2018.

The agency trimmed its 2018 world demand growth projection by 40,000 barrels a day to 1.4 million a day, projecting total consumption at 99.2 million barrels a day. Gasoline stocks were down (-3.8m vs. -1.4m expected) while distillate stocks (-0.1m vs. -2.4m expected) were also down.

Is $100-$3.60 per gallon gasoline in the USA -or higher possible?

Related:

Comments

Latest news

Adopt a Pit Bull!
This is not the first time Craft's pit bulls have gotten in trouble. Jones says one of those pit bulls took part in Wednesday's attack.

Man Late for Flight Storms Tarmac to Fight His Way Onto Plane
Engineers are said to have inspected the plane for damage before its departure, delaying the flight by as much as an hour. Jetstar confirmed that several crew members had been injured and said two flights were delayed by the incident.

We Still Don't Know Why These Lizards Have Lime-Green Blood
This suggests that green blood might have been an adaptive reaction, but researchers can not tell why the process had occurred. There are several lizard species in New Guinea with green blood, instead of the usual red.

European Union accused of 'interfering' in Italian politics
Leaked drafts of their government "contract" include provision for a "conciliation committee" to settle expected disagreements. They also taunted Brussels by warning that if European Union capitals were concerned, " then we're doing something right ".

Indian rupee opens higher by 7 paise at 67.72 per dollar
As per the RBI data, the country's forex reserves fell by $1.426 billion to $418.940 billion in the week to May 4. The Indian rupee opened higher by 7 paise at 67.72 per dollar on Thursday against previous close 67.79.

Salman Khan Not Willing To Work With Children In Films; Here's Why
The teaser only shows a glimpse of their sizzling hot chemistry and we can not wait for the full song to come out tomorrow. Race 3 also stars Anil Kapoor , Bobby Deol , Daisy Shah, and Saqib Saleem in the lead and will hit the screens on June 15.

BCCI announces squad for Women's T20 Challenge match
We've seen the Women's Big Bash League, the Kia Super League, and hopefully in a few years, the women's IPL. In this regard, the IPL Chairman Rajiv Shukla said in his statement: "The IPL will continue to be as usual".

OnePlus 6 passes scratch, burn, and bend testing
A YouTube channel by the name of JerryRigEverything has become the primary resource for smartphone durability tests online. All major smartphones are put through the scratch, bend, and burn tests on this channel to see how they hold up.

Una iPhone X Tesla, te costará 4.587 dólares - English
Above the shock-resistant solar panel is 999 standard gilding and the rest of the modification features a carbon fiber material. The 64 GB version of the iPhone X Tesla is going for a measly $4,500, while the 256 GB model will set you back for $4,800.

Woman tortured to death by a pack of dachshunds
A woman in the USA state of Oklahoma has died after she was attacked and mauled by a pack of dachshunds last Thursday night. According to her obituary , Garcia is survived by a son and daughter. "This is just a bad deal all the way around".

Tenth US trans death of 2018 confirmed as body found Texas creek
According to Human Rights Watch, there have been 113 trans and non-binary people killed in the country since 2013. The young man, who was attacked while commuting on the London Underground, received compensation for his attack.

Nigeria's population to rise 189 million between 2018 and 2050
By 2030, the world is projected to have 43 megacities with more than 10 million inhabitants, a lot of them in developing regions. The report also projected that the world's population itself will peak in a few years and decline by 2050.

Jay Rock Returns With Kendrick Lamar-Assisted Single 'Win'
Staying away from mumble rap styles, Jay Rock continues to rap with clarity. A new song by the mighty Jay Rock landed on Earth.

5 found dead, 1 injured in Ponder home shooting
Shortly before arrival, firefighters were told there were multiple victims inside the home. In her Facebook post, Simpson said she had been shot and was likely facing more surgeries.

Ocado lands major Kroger Smart Platform deal
Currently, the two companies are looking for suitable locations to establish three automated warehouse facilities. Kroger has almost 2,800 shops across 35 USA states and annual sales of $122bn in 2017.

Other news