Oil steadies as Saudi Arabia plans output increase

US Treasury in Talks Over Disconnecting Iran From SWIFT Amid Sanctions                AFP 2018

Saudi energy minister says his country would not be able to compensate for possible oil disappearance from global markets once the U.S. re-imposes its sanctions against Iran.

"However, this idea may have been put to bed on Monday when Saudi Energy Minister Khalid al-Falih said that "there is no intention" for such action, and that Saudi Arabia would play a 'constructive and responsible" role in world energy markets. He added that Riyadh had capacity to increase production to 12 million bpd. "It is still not a foregone conclusion that the kingdom's production increase will be enough to compensate for the potential output loss from Iran and Venezuela", said Abhishek Kumar, senior energy analyst at Interfax Energy in London.

U.S. West Texas Intermediate and international-benchmark Brent crude oil are under pressure Tuesday.

WTI (oil futures on NYMEX) is seen extending its declines in the European session, now down over a percent near fresh six-week lows reached just ahead of the 68 mark, as the bears remain in control amid reduced appetite for the risk assets such as the equities, oil etc.

The discount of USA front-month futures below the second-month rose to 25 cents, its highest since November 2017.

Saudi Arabia claims that Jamal Khashoggi died in a physical altercation inside its consulate in Istanbul.

"The big unknown is how much Iranian oil will be off the market and we'll know in about a month's time".

Saudi credit default swaps, a form of insurance against a sovereign debt default, have shot up to near one-year highs over the past week, reflecting investor nervousness.

The main price driver in Asia on Monday was the looming start of U.S. sanctions against Iran's oil exports, which will start on November 4. The countries have successfully clinched a deal to curb oil output within the OPEC+ group, and Russian Federation is ready to sell its S-400 missile defense system to Saudi Arabia.

Iran, the third-largest producer of the Organization of Petroleum Exporting Countries (OPEC), has blamed US President Donald Trump for oil price hikes, but the US president has pointed the finger at OPEC and called on the oil-producing body to boost output.

The outlook for demand next year, meanwhile, is deteriorating.

OPEC itself estimates demand for its crude will fall to an average of 31.8 million bpd next year, from an average 32.8 million bpd this year.

Related News:



Most liked

Premier Inn unveils new no frills Zip brand
The first Zip hotel is due to open in the Roath district of Cardiff in early 2019, while the second is set to be in Southampton. Premier Inn has unveiled new no frills brand Zip by Premier Inn, with rooms starting from £19 per night.

Steelers have no idea when Le’Veon Bell will return
That didn't happen, and there was a more recent indication he'd be back with the team this past week during their bye. The three-time Pro Bowler has held out of Pittsburgh's first six games over a contract dispute.

Man United's Jose Mourinho warned, Chelsea's Marco Ianni charged with improper conduct
He said on the BBC: "Whatever Mourinho said to his team (at half time) totally changed them". "I am a better player now". I would never rule out getting another, maybe when I have kids I might have something done to go with that.

OnePlus to launch a 5G smartphone in 2019
According to Pei, OnePlus' teams kickstarted plans to support 5G back in 2016, and were joined by Qualcomm the following year. It will rely on the Snapdragon X50 modem with the downsized QTM052 mmWave antenna module, announced at the conference.

Virat Kohli's latest century extends incredible record
The young man was rested in the first ODI and this had a bearing on the middle overs where India were not able to pick up wickets. Ganguly has hit 189 sixes while Rohit now has slammed 194 maximums which puts him third in the list amongst Indians.

Louis C.K. masturbated in front of Sarah Silverman with her consent
However, she also says she's fine with her friend making a comeback, so long as he *ahem* comes clean about the scandal on stage. His fame became widespread, and the influence, power, and status he wielded as a result were hard for him to adjust to.

Qualcomm's Snapdragon 675 rides the multi-camera and gaming trend
Devices powered by Snapdragon 675 can support up to 3 rear cameras with 5x optical zoom, Portrait and Bokeh effect and HDR. At the ongoing Qualcomm 4G/5G Summit in Hong Kong, the company announced the all-new Snapdragon 675 Mobile Platform .

Lynch out at least 1 month with groin injury
His injury is not only going to hurt the team's production on the field, but they will miss his leadership as well. Rapoport went on to note that injured reserve could be a distinct possibility for the 32-year-old running back.

Bowing to Pressure Netanyahu Delays Demolishing Khan al-Ahmar
Israel has threatened the demolition of the village as it is built "illegally" i.e. without the permission of Israel authority. This has raised criticism from Palestinians, who warn the proposed location is unsuitable as it poses a health risk.

Donald Trump: US will build up nuclear arsenal
Asked if that were a threat to Russian President Vladimir Putin, Trump said: "It's a threat to whoever you want". The 1987 pact helps protect the security of the United States and its allies in Europe and the Far East.

Sri Lanka's Rangana Herath to retire after England Test series opener
Herath will now draw the curtains on a 19-year-long global career after claiming 522 wickets across all formats of the game.

Devil May Cry 5 Collector's Edition Includes Very Expensive Collectible
The reservation period runs from today to Monday, November 19, so it'll be open for just about a month. If you're a bit tight on cash, then the 600,000 yen/ £4,000 edition is going to be up your alley.

Iconic Halloween themed weapon is returning soon to Fortnite
Developers will be using the extra time to further improve the UI, game menus, adding polish, an updated Hero System and more. The exact start date for Fortnitemares hasn't been revealed by Epic Games , but it is likely to begin later this week.

2.5 million pounds of taquitos recalled due to possible salmonella contamination
Anyone concerned about an injury or illness should contact a healthcare provider", the USDA said. The products should be thrown away or returned to the place of purchase.

Warren: I Took DNA Test to Rebuild Public Trust in Government
Warren is a potential 2020 candidate for president and is running for her second six-year term representing MA in the Senate. The two will go head to head in a one-hour debate Sunday at 7 p.m.at WGBY's Springfield studio.