Oil steadies as drilling increases in tight market

Oil steadies as drilling increases in tight market

Oil slipped toward $77 a barrel on Friday, under pressure from higher Saudi production and trade tensions between the United States and China, although oil supply disruptions lent support.

Beijing has threatened a 25 percent tariff on USA crude imports, although it has not specified a date. Meanwhile, Washington's new sanctions against Tehran are due to kick in from November. On the green territory, the other metals are traded, with copper and platinum being the biggest increase in price - by 1.63% and 1.26% respectively. -China tit-for-tat on trade.

"We're headed for an unparalleled trade conflict between the world's largest economies", said Stephen Innes, head of trading for Asia/Pacific at brokerage Oanda.

China has said it will retaliate, and major Chinese ports have already delayed clearing goods from the United States, according to several sources.

While the general consensus among analysts is that Trump's gamble won't pay off and global supplies will tighten, there is ample evidence to argue that a combined effort by the Saudis along with Russian Federation and US will be more than enough to offset losses.

John Driscoll, director of consultancy JTD Energy, suggested that China may even replace American oil with crude from Iran: "They [Chinese importers] are not going to be intimidated or swayed by US sanctions".

US crude oil is not on the list of 545 products the Chinese government has said it would immediately retaliate with in response to American duties.

An additional fact to consider: Tariffs would make US oil uncompetitive in China.

While no date has been set, industry participants expect the tariff to be levied. He added that the country's oil production and exports had not changed just because of USA pressure.

He added that his refinery had canceled US crude imports and would switch to Middle East or West African supplies instead.

"Shale crude is not an alternative to Iranian crude", Fielden said. That could lure India to take more USA crude, Fielden said.

Energy consultancy FGE today issued a warning of looming supply shortages due to USA sanctions against Iran, and because of disruptions elsewhere.

Amid the turmoil, some in the region spot opportunity.

But as is the case with any geopolitical conflict, the smart money always identifies opportunities, and Lee Dal-seok, senior researcher at the Korea Energy Economic Institute pointed out that "If China retaliates with tariffs on US crude, that could improve South Korea's terms of buying USA crude.because the USA would need a market to sell to".

Related News:



Most liked

Tropical storm watch discontinued
Beryl has weakened significantly, meteorologists said, and tropical storm watches have been lifted for Martinique, St. It was centered 210 miles (335 kilometers) east of Martinique and was moving west-northwestward at 23 mph (37 kph).

Thibaut Courtois tries to make things right with Jordan Pickford
He spoke of a squad of players who will do anything for each other and who want to work and to learn. Would you like to place a soccer bet?

Chinese premier praises EU, says free trade must be upheld
China-CEEC cooperation has played a constructive role in enhancing China-CEEC ties and promoting the process of European integration, said Li.

Brexit secretary David Davis has resigned
Davis and Baker, both longstanding euroskeptics, decided they couldn't support the policy, a person familiar with the matter said. Environment Secretary Michael Gove said Sunday that it did not contain everything he wanted but "I'm a realist".

Thai cave rescue: Operation resumes for remaining 9 who are trapped
The boys, ages 11-16, and their 25-year-old coach became stranded when they went exploring in the cave after a practice game. Relatives say the boys had been inside the cave during the dry season, when the labyrinthine complex is easier to navigate.

Iran hangs eight ISIL members over 2017 attack on Tehran
At least 17 people were killed and dozens injured in the attacks, which were later claimed by the Daesh terrorist group. Iran was targeted for supporting Iraqi and Syrian authorities in their fight against IS and other jihadist groups.

UK Brexit negotiator David Davis quits
A divorce agreement is due to be wrapped up in just 15 weeks, but there are still major obstacles to overcome. As the minister responsible for the Brexit negotiations, Davis is a major voice in the debate in the UK.

Former Ivory Coast global Emmanuel Eboue arrested
A report in the Mirror claimed that the Ivorian was detained by north London police for the aforementioned on the weekend.

Trump administration freezes payment program of 'Obamacare' - Newswatch
White House chipping away at the Affordable Care Act; correspondent Peter Doocy looks at the changes being made to the system. The idea is to remove the financial incentive for insurers to "cherry-pick" healthier customers.

Tropical Storm Chris to avoid New England
Elsewhere in the tropical Atlantic, Beryl - once a hurricane - has weakened substantially on approach to the Lesser Antilles. As a result, it is forecast to continue generating life-threatening waves and rip currents for the Mid-Atlantic beaches.

The Superfight: Champions Cormier, Miocic collide at UFC 226
White claimed Lesnar reached out to him a couple days ago and told him he was going to be at the fight. His win over Mark Hunt was declared a no-contest after he tested positive for a banned substance.

London ambulance damaged as England fans celebrate World Cup quarter-final win
When I looked around, everyone was calm. "That's what we need if we want to go all the way, so let's do it in the next one". England face Croatia in their semi-final match on Wednesday after they overcame Russian Federation on penalties.

Webb Simpson's 9-under 61 leads PGA event in West Virginia
Two-time Masters champion Bubba Watson settled for a 2-under-par 68 after taking a double bogey on the eighth hole, his 17th. Former victor of the event, Stuart Appleby, Robert Allenby, Steve Bowditch and Geoff Ogilvy will also have the weekend off.

Amid protests, Ottawa issues travel warning for Haiti
People in Haiti are being warned to stay inside as violent protests continue in Port Au Prince over a recent fuel price hike. A Haitian National Police vehicle drives next to barricades on a street in Port-au-Prince, Haiti, July 8, 2018.

Anne Frank family tried to escape to US
Even without the loss of their visa application, it would have been hard for the Franks to immigrate to the United States. The U.S. also increased the number of federal departments that had to approve visa applications, amplifying the red tape.