OPEC, Russia rebuff Trump's call for immediate boost to oil output

OPEC, Russia rebuff Trump's call for immediate boost to oil output

The West Texas Intermediate for November delivery rose by 1.30 USA dollars to settle at 72.08 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery added 2.40 dollars to 81.20 dollars a barrel on the London ICE Futures Exchange. If Brent prices climb past $82 a barrel, he said prices up to $90 would be a near-term possibility. Notably, the bank increased its estimate of supply losses from Iran 1 million barrels per day (mb/d), up from 500,000 bpd previously.

US Secretary of State Mike Pompeo has said Washington may grant waivers for major importers of Iranian crude but it still expects them to ultimately comply with the sanctions.

"We are not targeting a price, we are aiming for the stability of the market", for its part, has argued the minister emirati Energy, Souhail al-Mazrouei, chairman of the conference of the Opec.

"After the weekend's meeting, the voices of those who foresee $100 a barrel and compare the current backdrop to the 2007/2008 bull run are getting louder", said PVM Oil Associates strategist Tamas Varga.

The Trump administration has told countries like China, India and Turkey to cut all imports of Iranian oil by November 4 when the USA re-imposes sanctions against Tehran.

The higher oil prices could cause problems for Trump in the lead up to the midterm congressional elections in November. US light crude CLc1 settled up $1.30, or 1.8 percent, higher at $72.08.

After pulling out of the 2015 Iran nuclear deal in May this year, the Trump administration has pledged to impose an embargo on Iranian oil from November 5.

Rod Rosenstein resigns following explosive ‘Times’ report
Other reports suggest that Rosenstein has resigned, or indeed, resigned before Trump had the chance to fire him. The White House accepted his resignation, Bloomberg reported .

Hossein Kazempour Ardebili, Iran's ambassador to the Organization of the Petroleum Exporting Countries (OPEC), said none of the current major producers including Saudi Arabia and Russian Federation had the technical capability to fill the gap that would be created as a result of a potential halt in Iran's oil exports.

Hedge funds and other money managers raised their combined net long position in the six most important petroleum contracts by just 3 million barrels to 1.049 billion barrels.

The american president seems to count on its saudi allies, the world's top exporter, to compensate for the drop in iranian exports.

“While Citi is pricing in Brent (ICE) crude at around $80 for the quarter ahead, balances are precarious and the lack of spare capacity could see crude pricing well above $90 or even $100 should all of the potential risk in the market materialize, ” analysts including Ed Morse said in the note.

"Depending on the severity and the duration of the Iranian sanctions, the market simply does not have an adequate supply response for 2 million b/d of oil disappearing from the market".

Iran's Organization of the Petroleum Exporting Countries (OPEC) governor Hossein Kazempour Ardebili, centre, attends OPEC's 10th meeting of the Joint Ministerial Committee to monitor the oil production reduction agreement of the Organization of the Petroleum Exporting Countries, OPEC, and non-OPEC members, in Algiers, Algeria, Sunday, Sept. 23, 2018.

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