Oil rises one percent on signs OPEC not prepared to boost output

  • Oil rises one percent on signs OPEC not prepared to boost output

Oil rises one percent on signs OPEC not prepared to boost output

The U.S. moves have gotten furious reactions from Iran, especially amid talk of American officials asking Russian Federation and Saudi Arabia to make up the difference.

Iran remains "a very important exporter of oil", said the chief of the Organization of the Petroleum Exporting Countries.

Crushing U.S. oil sanctions on Iran will resume in early November and already, American allies in Asia are cutting back on their purchases of Iranian crude.

Trump, facing midterm elections in the United States, already has called for more oil production from Saudi Arabia and OPEC to bring down prices with limited effect.

US crude futures CLc1 settled up $1.27, or 1.8 percent, at $71.12 a barrel.

"Russia and Saudi Arabia claim they seek to balance the global oil market, but they are trying to take over a part of Iran's share", Iran's governor of the Organization of the Petroleum Exporting Countries, Hossein Kazempour Ardebili, was quoted as saying by Tasnim news agency on Saturday.

"When you have major producers facing supply challenges, it's of concern" for OPEC and consumers alike, he said.

Washington's withdrawal from the landmark Iran nuclear deal was criticised across the world.

"Saudi Arabia and the UAE are turning OPEC into a tool for the USA and consequently the organization has not much credit left", Iran's OPEC governor Hossein Kazempour Ardebili told the Shana newswire, affiliated to Iran's Oil Ministry.

"The brinkmanship between Beijing and Washington has the potential to severely impact the competitiveness of US crude oil and petroleum products in the Chinese market, and it will also deter Chinese investment in the USA energy sector", said Abhishek Kumar, senior energy analyst at Interfax Energy in London.

The escalating trade row is raising concerns about the potential for slower growth in oil consumption, offsetting supply concerns stemming from the upcoming USA sanctions on Iran over its nuclear program.

With Iran's crude sales falling due to the USA sanctions and countries such as Venezuela struggling to avoid outright economic collapse, it was perhaps inevitable that Mohammad Barkindo, secretary general for the Organization of the Petroleum Exporting Countries (OPEC), would tell Reuters that his cartel will keep working with other oil producers to manage global supplies in the face of demand for crude facing "headwinds".

Also weighing on oil prices, USA drillers added two oil rigs in the week to December 1, bringing the total count up to 749, the highest since September, Baker Hughes energy services firm said on Friday.