Oil prices dip sharply on U.S. inventories

Oil prices dip sharply on U.S. inventories

Oil prices dip sharply on U.S. inventories

LONDON-Oil prices edged up Friday after a week of oscillating between steep losses and gains.

Concerns about demand from China also increased Friday as state oil major Sinopec cut its purchases of USA crude.

Brent crude futures LCOc1 were down 13 cents, or 0.2 percent at $73.32 a barrel by 0052 GMT, after rising 1.5 percent on Thursday.

The question regarding Iranian oil supply now is, can the Trump Administration get everybody else except China, which has already said it won't recognize US sanctions on Iran, out of the market, according to the strategist.

The figure for May, based on surveys of producers, is down by almost 300,000 bpd compared to the earlier EIA estimate for 10.749 million bpd oil production for May, with this estimate based on forecasts.

The West Texas Intermediate (WTI) for September delivery lost 1.10 US dollars to settle at 67.66 dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery erased 1.82 dollars to close at 72.39 dollars a barrel on the London ICE Futures Exchange.

"There's an expectation that the build from this week will be gone next week", said Phil Flynn, an analyst at Price Futures Group in Chicago.

The world's biggest energy exporter raised production last month to 11.215 million barrels a day, a jump of 148,000 barrels from a month earlier and just below the post-Soviet record set in October 2016, according to government data emailed Thursday.

Tensions between the US and Iran are also supporting the market, Barratt said. OPEC has responded with boosting supply, but we are yet to see how much Iranian supply would be choked off, Croft said, adding that "it's going to be very significant".

The United States, China and India have previously urged oil producers to release more supply to prevent an oil deficit that could undermine global economic growth.

"It is nearly certain that China will impose additional duties on oil and refined products imported from the US if the Trump administration implements additional tariffs on the next tranche of Chinese goods".

US President Donald Trump's decision to pull out of an global nuclear deal and reimpose sanctions on Iran has angered Tehran.

Meanwhile, trade war concerns have resurfaced again on reports the Trump administration is planning to propose a 25% tariff on goods worth over $200 billion imported from China, instead of the original proposal for a 10% levy.

Crude oil costs experienced their worst monthly decline in over two years in July as a multi-year high in barrel prices broke away amidst plans by OPEC and Russian Federation to boost production limits. Analysts polled by Reuters had expected a decline of 2.8 million barrels.

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