• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 30 mins Which producers will shut in first?
  • 2 hours The Most Annoying Person You Have Encountered During Lockdown
  • 4 hours Its going to be an oil bloodbath
  • 18 hours We are witnesses to the end of the petroleum age
  • 23 mins Saudi Aramco struggling to raise money for this year's dividend of $75 billion. Now trying to sell their pipelines for $10 billion.
  • 23 hours Breaking News - Strategic Strikes on Chinese Troll Farms
  • 2 mins Russia's Rosneft Oil Company announces termination of its activity in Venezuela
  • 43 mins How to Create a Pandemic
  • 7 hours Wastewater Infrastructure Needs
  • 21 hours A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 22 hours >>The falling of the Persian Gulf oil empires is near <<
  • 1 day Natural gas price to spike when USA is out of the market
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Oil Markets Walk A Tightrope

Rig

U.S. West Texas Intermediate crude oil futures are trading higher on Friday. The market is also in a position to post a higher close on the weekly chart, something it has done only once since the week-ending June 29.

Worries that the sanctions on Iran will cut significant volumes of crude from the market are underpinning the market today. Some traders, however, are saying gains are being limited by concerns over future demand due to the trade dispute between Washington and Beijing.

Traders are also reacting to the tight supply/demand situation which makes the market vulnerable to any supply disruption. Traders are particularly concerned about the supply side of the equation because of the looming U.S. sanctions against Iran, which will target oil exports from November.

According to early estimates, the sanctions are expected to strip about 2.5 million barrels per day (bpd) of crude and condensate this year from the market, or about 2.5 percent of global consumption. Analysts also note that Iran is already experiencing a slowdown with tanker loadings already down by around 700,000 bpd in the first half of August relative to July. This is currently ahead of expectations.

Analysts are also saying that during the fourth quarter of 2018, the market will be facing an issue with either undersupply, dwindling spare capacity or both.

While the bullish headlines are driving the price action this week, some traders are still expressing caution due to concerns…




Oilprice - The No. 1 Source for Oil & Energy News