Oil Prices Rise as Iranian Crude Exports Fall

India's Iranian Oil Imports Inch Up In September | OilPrice.com

India's Iranian Oil Imports Inch Up In September | OilPrice.com

Iran's crude exports fell further in early October as buyers sought alternatives ahead of USA sanctions that take effect on November 4, according to tanker data and an industry source.

EIA estimated Brent crude oil spot prices averaged 79 dollars a barrel in September, up 6 dollars from August.

West Texas Intermediate for November delivery declined as much as $1.37 to $71.80 a barrel on the New York Mercantile Exchange, and was at $72.37 at 7:55 a.m.in London. The International Monetary Fund cut its global economic growth forecasts for 2018 and 2019 on Tuesday, raising concerns that demand for oil may also slump.

New Delhi wants to continue purchasing Iranian oil through this round of sanctions, although it is preparing to trim imports to win waivers from the United States.

Saudi Arabia, the biggest producer in the Organization of the Petroleum Exporting Countries, last week said it would increase crude output next month to 10.7 million bpd, a record.

The price of WTI crude oil futures are settling the day at $74.96, up $0.67 or 0.9% on the day. OPEC has been under the hit list from the USA for declining the increased outcome to answer rising oil prices.

Oil prices slumped to two-week lows on Thursday as global stock markets fell, with investor sentiment made more bearish by a report showing USA crude inventories rising more than expected.

India is Iran's second-largest single oil customer after China and was expected to cut back on Iranian oil purchases, but is unlikely to cut off completely the cheap Iranian oil that is suitable for its refineries.

"Oil prices have stabilized for the moment - between a real and a metaphorical storm", said Fiona Cincotta, senior market analyst at City Index.

Money managers cut their net long U.S. crude futures and options positions in the week to October 9, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

Recently, Brent crude futures were dropped by more than 1% in Asia as stated by a survey of S&P Global Platts.

The kingdom will invest $20 billion in the next few years to maintain and possibly expand its spare oil production capacity, Saudi Energy Minister Khalid al-Falih said this month.

A drop in US oil production this week supported prices.

In the U.S. Gulf of Mexico, producers have cut daily oil production by roughly 42 per cent due to Hurricane Michael, the Bureau of Safety and Environmental Enforcement said.