Oil slips as economic concerns outweigh tighter supply

India to reduce oil from Iran ahead of US sanctions report

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US President Donald Trump has repeatedly urged the cartel to raise its production and said that other countries must stop buying oil from Iran or face US sanctions.

Meanwhile, Storm Isaac, a second hurricane hurtling across the mid-Atlantic, could pose an even bigger threat to oil supplies if it makes landfall on the Gulf of Mexico - a main hub for USA refinery and production.

"Saudi Arabia and the UAE are turning OPEC into a tool for the United States and consequently the organisation has not much credit left", Iran's OPEC governor Hossein Kazempour Ardebili told the Shana newswire, affiliated to Iran's Oil Ministry.

Nearly all of Iran's main customers purchased fewer Iranian barrels in August than they did in April, the month before Trump said sanctions were being reimposed.

"There has been a lot of speculative interest searching for Brent above $80.00 a barrel on the back of the US sanctions on buyers of Iranian crude oil, but so far this year any buying of Brent above $79.00 barrel did not have a long shelf life".

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Helima Croft, RBC Capital Markets' global head of commodity strategy, confirmed the threat of multiple hurricanes could affect the supply chain, as well as Mr Trump's crippling export sanctions on Iran, prompting foreign investors to look elsewhere to set up refineries. This will certainly increase the chances of less oil coming from Iran.

Still, supply concerns are supported by data showing that USA crude production fell by 100,000 bpd to 10.9 million barrels per day last week as the industry faces pipeline capacity constraints.

The monthly report from the International Energy Agency stated that "things are tightening up" and "As we move into 2019, a possible risk to our forecast lies in some key emerging economies, partly due to currency depreciation versus the USA dollar raising the cost of imported energy".

For this month, India's oil import from China is bound to drop less than 12 million barrels each, this is against the backdrop of boosted purchase during the April-August period in the anticipation of reductions. He was formerly with OPEC and Saudi Aramco. As yet, the violence has not affected oil production, which reached 4.55 million barrels per day in July, and exports recently hit a record of 3.59 million barrels per day. Here are the production numbers of the OPEC countries in the past two months. Bad enough for Russian energy minister Alexander Novak to call the situation "fragile". China, Iran's biggest oil importer, said it will continue to import oil from Tehran.

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