Oil prices down more than one percent on rising supply, trade war

Reuters  File

Reuters File

WTI crude oil futures for front-month delivery fell 1.2 percent to $66.79 per barrel as of 11:14 a.m. EST, while Brent crude for front-oil delivery declined 0.8 percent to $77.05 per barrel at the same time.

Oil prices dipped on Tuesday, dragged down by concerns that the Sino-U.S. trade dispute will dent economic growth and by signs of rising global supply despite upcoming sanctions against Iran.

Earlier in the session, Brent reached a session low of $75.09 a barrel, the lowest since August 24.

Oil held losses near $67 a barrel on speculation that an escalating trade dispute between the USA and China will dampen global growth at a time when American crude inventories are growing.

Trump said he would like to make a deal now but that China was not ready.

The Trump administration has called on all buyers of Iranian oil to cut imports to zero but Iranian officials say that will not happen.

Oil prices fell Monday as Russian Federation said its crude production will run unabated, and concern over the global economy's direction put crude on track for its biggest monthly drop in more than two years.

Speaking to Shana, Saeed Khoshroo, the director of worldwide affairs at NIOC, said the prices were charged based on the global oil prices; therefore, if the traded shipments were quoted lower during IRENEX Sunday session than the base price announced by NIOC in an earlier announcement, it was because of price fluctuations in the global market.

"What is happening today is a lie that United States policymakers are telling the people of the world and the Americans that Iran's oil supplies should be replaced by Saudi Arabia so that oil prices would not rise", he said. "The second one is global economic growth momentum slowing down", IEA chief Fatih Birol told an energy conference in Singapore.

Iran was selling around 2.8 million barrels per day in June, the CNBC said in a report quoting ClipperData - a provider of crude oil and petroleum product cargo tracking solutions for energy producers, refiners and trading companies.

That's an increase of 10 million bpd since the start of the decade and means that these three producers alone now meet a third of global crude demand. Stockpiles were expected to have risen about 4.1 million barrels in the week ended October 26, an extended Reuters poll showed on Tuesday.

The United States is set to impose new sanctions on Iranian crude from next week and exports from the Islamic Republic have already begun to fall.

State Department spokesman Robert Palladino told reporters that while the U.S.is seeking to reduce global purchases of Iranian oil to zero, Washington is in the midst of an "internal process" to provide waivers to countries that have made "significant" reductions to their purchases of Iranian oil.

This story has not been edited by Firstpost staff and is generated by auto-feed.

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