Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Oil dips as Russia signals output will stay high

    Oil dips as Russia signals output will stay high

    October 29, 2018
    Share
    Facebook Twitter LinkedIn WhatsApp
    *Russia’s Energy minister, Alexander Novak

    29 October 2018, News Wires — Oil prices edged lower on Monday as Russia signaled output will remain high, but losses were limited ahead of U.S. sanctions on Iranian exports that are expected to reduce supplies when they come into effect in just under a week.

    Brent crude futures fell 12 cents to $77.50 a barrel by 11:48 a.m. EDT (1548 GMT). U.S. West Texas Intermediate (WTI) crude lost 30 cents to $67.29 a barrel.

    Even with U.S. sanctions on Iranian exports due to come into force on Nov. 4, oil prices have fallen about $10 a barrel since four-year highs reached in early October.

    Russian Energy Minister Alexander Novak said on Saturday there was no reason for Russia to freeze or cut its oil production levels, noting that there were risks that global oil markets could be facing a deficit.

    The Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia and non-OPEC member Russia, agreed in June to lift oil supplies, but OPEC then signaled last week that it may have to reimpose output cuts as global inventories rise.

    “When the Russians start talking about keeping the production levels high and even the possibility that they need to increase it because of a possible tightness in supply, that brought on some selling pressure,” said Gene McGillian, director of market research at Tradition Energy in Stamford, Connecticut.

    Industrial commodities such as crude and copper have also been rattled by hefty losses in global equities due to concern over corporate earnings, and fears over the impact to economic growth from escalating trade tensions, as well as a stronger dollar.

    Though equity markets recovered on Monday, the benchmark S&P 500 .SPX was on track to post its worst monthly performance since May 2010.

    The U.S. dollar index also rose on Monday, supported by robust U.S. consumer spending data. A stronger dollar makes greenback-denominated commodities more expensive for holders of other currencies.

    “It is often said that when stock markets sneeze, commodities catch a cold. This adage was on full display last week as a global rout on equity gauges dragged the energy complex lower,” PVM Oil Associates strategist Stephen Brennock said.

    Fund managers have cut their bullish positions in crude futures and options for four weeks in a row to their lowest since July 2017, as the demand outlook grows more uncertain.

    On the supply side, Iran has started selling crude to private companies via a domestic exchange for the first time, the oil ministry’s news website reported.

    With just days to go before U.S. sanctions on Iran take effect, three of Iran’s top five customers – India, China, and Turkey – are resisting Washington’s call to end oil purchases outright, arguing there are not sufficient supplies worldwide to replace them, according to sources familiar with the matter.

    That pressure, along with worries of a damaging oil price spike, is raising the possibility of bilateral deals to allow some buying to continue, according to the sources.

    • Reuters

    Related News

    NOSDRA inaugurates technical committee on application of capping stack

    IPPG commends NUPRC’s regulatory reforms

    Tanker drivers, IPMAN suspend loading at Dangote Refinery over dispute

    E-book
    Resilience Exhibition

    Latest News

    Tetracore, Dangote Cement boost energy partnership with new mobile refueling units

    June 15, 2025

    Transocean Coatings establishes affiliate at SIIFZ

    June 15, 2025

    Nigeria reiterates commitment to port automation

    June 15, 2025

    Seplat Energy earns CIPS Procurement Excellence Standard Certificate

    June 15, 2025

    NOSDRA inaugurates technical committee on application of capping stack

    June 15, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.