Oil prices rose today after Saudi Arabia " s oil cartel OPEC governor Adeeb Al-Aama said the kingdom " s crude exports will fall by about 100,000 barrels per day (bpd) in August, over-shadowing market pressure from a rising dollar and record high United States crude production.
Meanwhile, West Texas Intermediate crude prices for August delivery soared 0.13 per cent to trade at Dollars 68.33 a barrel while Brent crude was up 0.28 per cent at USD 72.78 on the New York Mercantile Exchange.
Until May this year when the USA announced that it would withdraw from the Iran nuclear deal and renew trade sanctions, Korean companies imported cumulative 44.51 million barrels of crude oil, accounting for 9.7 percent of the total.
Signs of Russian Federation and Saudi Arabia increasing oil production, as well as last week's surprise build in US crude stocks, have also weighed on prices, said Tariq Zahir, analyst at Tyche Capital Advisors.
"Saudi Arabia and Russian Federation talking about supplying the markets, that would certainly have the potential to weigh on market sentiments", Lipow said.
Trade tensions continued to weigh on the market, providing a ceiling for any gains, traders said.More news: Charges against Maria Butina confirm 'infiltration' was part of Russian 2016 attack
Even higher USA production is likely, Rystad Energy said. They rose 5.8 million barrels last week, compared to a forecast for a decline of 3.6 million barrels.
Along with falling refinery utilisation rates, shrinking crude exports, which had dropped last week to the lowest level since April, also contributed to the inventory build.
Goldman Sachs has been bullish on crude oil this year.
The price of U.S. crude oil is dropping still further as oversupply in the market continues to dominate trading.More news: After Alaska closings, just 1 Blockbuster left in US
There was some support for prices based on comments from Saudi Arabia, the world's biggest oil exporter, that it would cut crude shipments. Prices yesterday dropped 32 cents to US$72.58.
"That's the takeaway from Wood Mackenzie's latest long-term outlook for global oil supply", reports OilPrice.com, an industry site.
Looking at other news, OPEC and non-OPEC compliance with recent supply restrictions is now running at 120% according to anonymous sources who spoke to Reuters.
Lower crude oil demand in the US and China caused by an economic slowdown from their trade war would have a tremendous impact on the crude oil market.
Prices had gained earlier after the Energy Information Administration reported gasoline held in U.S. storage tanks dropped last week by the most since May on the back of strong fuel demand, countering a surprise gain in nationwide crude inventories.More news: Modric wins the Golden Ball at the World Cup
- Federation Internationale de Football Association 18 predicted the World Cup champions
- Collin Sexton is Taking Summer League Way too Seriously
- Netanyahu commends Trump for commitment to Israel in Russian talks
- Russian 'agent' Maria Butina held in United States jail over conspiracy charges
- Former SUPERIOR SPIDER-MAN Writer Returns for SUPERIOR OCTOPUS
- Trump plays Putin's ball, but no breakthrough in Helsinki
- New Chelsea boss Sarri: I want to bring enjoyment to the fans
- U.S. voters: what's your reaction to Trump and Putin's meeting?
- National Hot Dog Day 2018 freebies & deals TODAY
- Manchester United target double swoop for Croatia stars