Will "Take Care" Of Countries That Don't Stop Importing Iran Oil

  • Will

Will "Take Care" Of Countries That Don't Stop Importing Iran Oil

An oil tanker unloads crude oil at a crude oil terminal in Zhoushan, Zhejiang province, China July 4, 2018.

Brent crude futures were down 2 cents at $84.98 a barrel by 0049 GMT, after a 1.3 percent gain on Tuesday.

Goldman Sachs says US shale oil production can continue to increase by 1 million bpd every year until 2021, according to a new report by the investment bank.

The WTI Crude Oil market rallied significantly during trading on Tuesday, breaking above the top of the hammer from the Monday session.

In its monthly report, the Organization of the Petroleum Exporting Countries said world oil demand would increase by 1.36 million barrels per day (bpd) next year, marking a decline of 50,000 bpd from its previous estimate. Overall, I think short-term pullbacks offer buying opportunities and I think that the value hunters will continue to pick up crude oil every time it dips.

Crude inventories rose by 6 million barrels in the week to October 5, data from the Energy Information Administration showed on Thursday.

Falling U.S. equity markets and a global risk-off environment also weighed on crude futures.

OPEC sees the oil market as well supplied and is wary of creating a glut next year, the group's secretary-general said on Thursday.

Oil prices edged lower on Wednesday after the International Monetary Fund lowered its global growth forecasts but prices were supported as Hurricane Michael churned towards Florida, causing the shutdown of almost 40 percent of US Gulf of Mexico crude output. The rapid increase in prices was more about perception of a supply shortage than real fundamentals, he said.

In the U.S. Gulf of Mexico, producers were checking production platforms and beginning to return crews to more than 90 offshore facilities evacuated this week as Hurricane Michael moved through the Gulf.

The cuts represent 680,107 barrels per day of oil production, BSEE said, citing reports from 30 companies.

Michael crashed ashore Florida on Wednesday as the third most powerful hurricane ever to strike the US mainland.