Wednesday, 12 December, 2018

OPEC cuts oil demand estimate in 2019

Oil price extend losses as other markets fall, stockpiles climb OPEC cuts forecast for global oil demand growth in 2019
Ginger Lawrence | 14 October, 2018, 03:04

OPEC has been under the hit list from the US for declining the increased outcome to answer rising oil prices.

OPEC said Thursday that the oil market was "well supplied", and downgraded its global demand forecast.

India, a major buyer, has ordered Iranian oil for November, although New Delhi does not yet know whether it will receive such a waiver.

Oil stocks took a beating Thursday after OPEC said its production rose in September, easing concerns about a drop-off in Iranian barrels as USA sanctions loom. He stated a firm "not now" to President Trump's shouts to increase oil production.

Money managers cut their net long U.S. crude futures and options positions in the week to October 9, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

As Wednesday saw crude prices drop dramatically due to sudden concerns about oversupply and waning demand, it was unsurprising that some experts would warn of "extreme volatility" for prices due to the US sanctions against Iran.

"I think the sanctions will be very tough", Beard said.

Iranian Oil Minister Bijan Zanganeh on Monday described a Saudi claim that the kingdom could replace Iran's crude exports as "nonsense".

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Other ports further west were still operating normally.

Supply worries also eased as Hurricane Michael likely spared oil assets from significant damage as it smashed into Florida, even as it caused at least one death, injuries and widespread destruction. Year to date, OPEC's reference basket is up $20.21 (40%) per barrel compared to the first nine months of 2017.

Oil futures lost more ground in electronic trading late Wednesday, after settling with a loss of more than 2% in NY.

US light crude dropped $1.42, or 1.9 percent, to $71.75 after hitting a low of $71.63. However, those sanctions on Iran were lifted in 2016. "If it were not for the trade dispute, the oil market probably would have kept its momentum on lingering supply risks".

Sourcing from Iran increased to 12.7 MT in 2015-16, giving it the sixth spot.

China's daily crude oil imports in September hit their highest level since May, customs data showed on Friday.

Oil headed for the biggest two-day drop since July, with fuels from diesel to gasoline also declining as fears over a worsening trade war rattled markets across the board. As supply conditions continue to tighten, crude oil prices are rallying as a result. Blockchain is one such technology which has vast usages across the O&G industry.