Oil hits $80 as Iran fears mount

AN aerial view of Chabahar Port in Iran being built by India. The US has refused to allow any country specific exemptions to the sanctions on Iran complicating Indian plans for the port.—File

US sanctions on Iran's energy industry, which come into force in November, have already cut supply back to two-year lows, while falling Venezuelan output and unplanned outages elsewhere will also keep the balance between supply and demand tight, the IEA said.

"We think oil market fundamentals are increasingly supportive of crude prices, at least at current levels", said Gordon Gray, HSBC's global head of oil and gas equity research.

"Oil cut earlier losses and rose towards its highest level this year on Wednesday, after a drop in US crude inventories and as the prospect of the loss of Iranian supply added to concerns over the delicate balance between consumption and production".

Oil traders were also watching the progress of category 4 Hurricane Florence, which is expected to make landfall in the USA by Friday.

US crude futures rose 61 cents to $69.86 a barrel.

"The situation in Venezuela could deteriorate even faster, strife could return to Libya and the 53 days to November 4 will reveal more decisions taken by countries and companies with respect to Iranian oil purchases", the IEA said, referring to the day USA sanctions on Iran take effect.

South Korea has made a decision to comply with US demands to cut oil imports from Iran to zero, becoming the first to do so out of the top three buyers.

"Things are tightening up", it said.

Check out the official iPhone XS, XS Max and XR promo videos
At a packed event yesterday Apple introduced three new iPhones and a re-designed Watch Series 4 so there's plenty to digest. For example, we now have adapters that let you listen to music and let you charge your phone at the same time.

Apple touts its largest screens, cheaper models in iPhone revamp
There are some new tools to monitor how much time you spend looking at your phone and some tweaks to how notifications display. As expected , the iPhone XS is no cheaper than last year's iPhone X , but thankfully no more expensive either.

Marvel Announces New Miles Morales: Spider-Man Creative Team
Miles Morales: Spider-Man #1 by Saladin Ahmed and Javier Garron goes on sale in December from Marvel Comic. Part of what we love about Spider-Man is all the crap he goes through.

"According to Bloomberg, in case the Iran sanctions come into place, oil price could go up to $150 a barrel", reported ET.

In its monthly report, OPEC said world oil demand next year would rise by 1.41 million barrels per day (bpd), 20,000 bpd less than last month and the second consecutive reduction in the forecast.

Brent rose above $80 per barrel on Wednesday for the first time since May, spurred by expectations that U.S. sanctions against Iran's oil exports, which will start in November, will tighten global markets. "Russia has the potential to raise production by 300,000 barrels (per day) mid-term, in addition to the level of October 2016", he said.

S&P global Platts said OPEC, in a report, indicated demand for the organization's own crude oil in September will be nearly 1 million bpd more than the level produced in August.

Demand for crude from the Organization of the Petroleum Exporting Countries will moderate in 2019 to 31.9 million bpd, from an estimated 32.3 million bpd this year, the IEA said.

Combined output by these three producers has risen by 3.8 million bpd since September 2014, more than the peak 3 million bpd Iran has managed during the last three years.

Innes said the slight dips on Thursday came as rising refined product inventories, which the EIA also reported, "slightly dampened market overexuberance" as it indicated that U.S. fuel demand may be weakening.

Although the EIA does not publish crude production forecasts for Russia and Saudi Arabia in its short term outlook, it expects that USA output will continue to exceed Russian and Saudi production for the remaining months of 2018 and through 2019.

Related:

Comments

Latest news

Australian Newspaper Doubles Down On Racist Serena Williams Cartoon
Michael Miller, executive chairman of News Corp Australasia, which publishes the Melbourne's Herald Sun , defended Knight. The cartoonist denied it was racist, saying he had meant to depict only the tennis player's "poor behaviour".

Final Fantasy 7 and More Coming to Nintendo Switch
And so is World of Final Fantasy , as a new version called World of Final Fantasy Maxima (also coming to PC, PS4 and Xbox One). Final Fantasy 15: Pocket Edition is kicking off this string of Final Fantasy releases for the Switch, and it is available now.

"Once In A Lifetime" Hurricane Florence Weakens, Begins Lashing Eastern US
That is enough water to fill the Empire State Building almost 40,000 times. Along the coast, fewer homes have flood insurance than five years ago.

Mexico analyzing US proposal on deportation funding
Central Americans attempting to flee to the USA via Mexico will be the main target of the initiative. The goal of the program would be to reduce the flow of migrants arriving at the border.

Unai Emery insists Mesut Ozil relationship remains strong
Arsenal star playmaker Mesut Ozil has been linked with a move away from the north London based club following a turbulent summer. And he made it clear he wants to see more from Ozil going forward. "He is working for the team to help us with his quality.

Liverpool handed boost as key trio to be rested on worldwide duty
Liverpool went into the worldwide break as the Premier League leaders after winning four games on the trot since opening day. Evans told the official Liverpool FC website : "So far this season it has been win, win, win - which is brilliant".

Much less on the line this time for Bengals, Ravens
In what started as an ugly, mistake-filled affair, the Bengals got great field position after Joe Flacco's poor interception. The Bengals also got off to a winning start on Sunday, and in doing so have released their new secret weapon in Joe Mixon .

Hurricane Florence: Four reasons to fear this storm
Cooper said 108 shelters are open across the state, with more than 7,000 people already staying at them, as of Thursday afternoon. The Charleston area will see winds near tropical storm strength of 40 miles per hour and somewhere between 3 to 6 inches of rain.

Chance for tropical development in the Gulf up to 70 percent
Computer models are in general agreement that Invest 95L will cross the Yucatan Peninsula into the Gulf of Mexico towards Texas. The system is expected to bring the threat of flooding to already saturated grounds along the Texas coast.

Lake Washington Girls Middle School hosts Seattle Storm watch party
Then he watched them turn into the best team in the league during the season, and validate that status in the postseason. Students kept rooting for the Storm into the fourth quarter, where the game got close, but never close enough.

Fabinho claims Tiemoue Bakayoko exit is huge mistake
Fabinho though, who was a team-mate of Bakayoko's at Monaco, thinks he will come back to England stronger. It will not be easy. "One week is not enough to remove the defects of a player".

Manchester City Announce Revenues in Excess of £500m in Record Breaking Season
The club reported a profit for the fourth successive season, this time of £10.4m and a wage-revenue ratio of 52%. Al Mubarak said: "Our journey is not complete and we have more targets to fulfil.

IPhone XS, XS Max: First Impression
The last time it discontinued an iPhone model a year after announcing it was the iPhone 5, released in 2012 and canned in 2013. Perhaps the most shocking news to come out of the iPhone event was that Apple has chose to kill off the iPhone X .

People Have Spotted Something Hilariously NSFW About Hurricane Florence
Emergency declarations were in force in Georgia, South and North Carolina, Virginia, Maryland and the District of Columbia. Nearly 160,000 customers already were without power in North Carolina Thursday evening - and that number is likely to rise.

Lloris to remain Spurs captain despite drink-driving conviction
The Spurs captain has been with the club since 2012. "You learn that today football is not only what happens on the pitch". The staff, the club, the fans, us, and he said "Any decision that you take gaffer, or the club, I think is fair".

Other news