Benchmark Brent crude oil was up 50 cents at US$77.80.
The cartel agreed in...
Last month, Saudi Arabia and Russian Federation agreed to increase production and the USA continues to produce at record levels, however, unless there is a drop in demand, it appears we are headed toward a supply deficit later this year. Trump wrote on Twitter on Independence Day.
"Because it's driving season, you expect a lot of crude to go through refineries right now - so that's why we were looking for a draw", said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut. If anything, they are driving prices higher as the United States defends many of their members for very little $'s.
Unable to bring in USA dollars and euros ahead of the new US sanctions that kick in in early November, Iran is open to accepting agricultural products and medical equipment in exchange for its crude oil, Iranian Labor News Agency (ILNA) quoted the spokesman of the Parliament's energy committee, Asadollah Gharekhani, as saying. He added, "This must be a two way street".
A supply outage in Libya is adding extra upside support.
Futures closed just 0.3 per cent higher after surging past US$75 a barrel earlier in the session.
In addition to pressing Saudi Arabia to pump as much as 2mmb/d more to an unprecedented 12mmb/d, an amount many doubt the Saudi can maintain for an extended period of time - think Tesla making Model 3s - the Trump administration has also been pushing countries to cut all imports of Iranian oil from November when the United States re-imposes sanctions against Tehran, after Trump withdrew from a 2015 nuclear deal agreed between Iran and six major powers.
Oil prices have been buoyed by tightening supplies this year but there are signs demand may now be easing.
Yesterday, the deputy commander of the Sarollah Revolutionary Guards in Tehran warned that any attempt to undermine Iran's oil exports will lead to the closing of the Strait of Hormuz-a narrow waterway vital to oil distribution in the Persian Gulf region.
Morgan Stanley thinks that oil prices will jump to $85 a barrel as early as the second half of this year, because of the USA push to remove as much Iranian oil from the market as possible. "Since when did you start ordering OPEC!"