OPEC sees weaker demand for its crude next year as rivals surge

14 October, 2018, 03:07 | Author: Brooke Harris
  • Oil price extend losses as other markets fall, stockpiles climb

Oil prices rose on Tuesday on growing evidence of falling crude exports from Iran, OPEC's third-largest producer, before the imposition of new US sanctions and a partial shutdown in the Gulf of Mexico because of Hurricane Michael.

According to the outlook, Brent crude oil spot prices will average 74 US dollars a barrel in 2018 and 75 dollars a barrel in 2019.

Brent crude fell $1.55, or 1.9 percent, to $81.54 a barrel by 10:53 a.m. ET (1453 GMT), off the session low of $81.14, its weakest since September 26. Brent crude reached a four-year high of $86.74. OPEC has been under the hit list from the US for declining the increased outcome to answer rising oil prices.

Last month, India shipped in about 528,000 barrels per day (bpd) oil from Iran, about 1 percent more than the 523,000 bpd of August and about 27 percent more than a year earlier, tanker arrival data obtained from shipping and industry sources showed.

"At the heart of the price malaise are concerns that oil demand will be adversely impacted by a myriad of downside risks facing the global economy". The U.S. National Hurricane Center upgraded Michael to an "extremely dangerous" hurricane yesterday.

Saudi Arabia's September production rose to 10.50 million barrels a day, a month-over-month increase of about 100,000 barrels a day.

Hurricane Michael kills 17 in US
The number was expected to rise as the storm exited the state late Thursday, Duke said in a tweet . Ronald, who lives in Coral Gables, said, "I'm okay". "People will just pack up and leave".

OPEC now forecasts average 2018 global demand of 98.79 million barrels a day in 2018, down by about 30,000 barrels from the previous month's estimate.

On the oil front, United States crude inventories rose by 6 million barrels last week, the Energy Information Administration said, more than double analysts' expectations of a 2.6 million-barrel increase.

Elsewhere, U.S. crude inventories climbed by 6 million barrels last week, the Energy Information Administration said, more than double analyst expectations of a 2.6 million-barrel increase. OPEC and its allies "are ready and willing to continue to make sure that the market remains well supplied".

Oil traders will watch for the weekly USA drilling rig count, an indicator of upcoming production, which is due at about 1 p.m. from Baker Hughes.

Oil prices rose Tuesday due to evidence of falling Iranian crude exports and as roughly 20% of daily oil production was lost from offshore Gulf of Mexico wells due to Hurricane Michael.

Worries about crude supply from the Middle East have given prices some support.

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