Oil prices steady as OPEC supplies weigh but Iran sanctions loom

Oil prices steady as OPEC supplies weigh but Iran sanctions loom

It's unclear, however, how much other countries will cut back on Iranian oil imports. Oil prices were also under pressure as worldwide shippers stopped loading Iranian oil in preparation for US sanctions against Iran. "Is demand going to continue as strongly as it did?"

OPEC and allies agreed in June to boost supply as US President Donald Trump urged producers to offset losses caused by the renewed sanctions on Iran and to dampen prices, which this year hit $80 a barrel for the first time since 2014. OPEC and Russian Federation, the world's largest producers, promised to boost supply a few days afterwards.

"Despite this, OANDA's Innes said it was too early to say whether an economic slowdown would put a serious dent on oil prices".

In Saudi Arabia, two delegates from the Organization of Petroleum Exporting Countries said the kingdom pumped almost 140,000 barrels more in August from a month earlier, while Russia, the main beneficiary from its deal with OPEC to unfetter output, extracted an average of 11.21 million barrels a day, according to data from the Russian Energy Ministry's CDU-TEK unit.

USA oil prices headed higher on Tuesday after two oil platforms on the Gulf of Mexico were evacuated in advance of an expected hurricane.

The latest threat was in July when Rouhani said Iran has always guaranteed the security of the strait but warned the USA "should not play with the lion's tale".

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"There is a danger that the demand will be impacted as well. So we are looking at both sides of this discussion", Mohammed bin Hamad Al Rumhy told CNBC's Hadley Gamble Monday.

"And I think, and many people agree with me, that the demand will be impacted - so that's not good for us". The move would mean that around 50 percent of Chinese exports to the USA would be subject to extra duties.

"This will shift the front end Brent crude oil price into the higher $70s range with a touch of $80s". According to Reuters data, some 16 million barrels of oil are still in floating storage around northwest Europe and the Mediterranean, including North Sea crudes such as Forties and Ekofisk, Saudi Arab Light, Algerian Saharan, Russian Urals, U.S. shale and West African grades such as Nigerian Bonny Light and Ghanaian Jubilee. Russian production has now surpassed the Soviet era peak above 11 million barrels per day.

In terms of recent demand, China's crude oil imports recovered slightly in July after falling for the previous two months, according to Reuters.

Iranian President Rouhani publicly blamed President Trump for the country's financial crisis last week; saying "anti-Iranian agents in the White House" were directly responsible for the currency's stunning low. Tariffs will also continue to hurt China's economic growth thus also reigning in some of its oil consumption/demand.

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