OPEC's Mohammad Barkindo says very concerned about spare oil capacity

OPEC's Mohammad Barkindo says very concerned about spare oil capacity

OPEC's Mohammad Barkindo says very concerned about spare oil capacity

The Saudis are right when they say that they've got enough oil to supply everybody who wants it, so what we have in the market is a little bit more of a "fear factor", Taylor said.

"The large increase in overall crude oil inventories and a decent-sized increase at the Cushing, Oklahoma, delivery hub is a negative for prices, as it eases some of the supply crunch worries that have crept into the market", said John Kilduff, a partner at Again Capital Management in NY.

Oil prices rose Tuesday due to evidence of falling Iranian crude exports and as roughly 20% of daily oil production was lost from offshore Gulf of Mexico wells due to Hurricane Michael.

IMF Brent crude LCOc1 was down 20 cents at $84.80 a barrel by 0915 GMT after a 1.3 per cent gain on Tuesday.

"To my mind, we don't really have a supply squeeze at all", Taylor told Bloomberg.

India's September oil imports were also boosted by the import of 2 million barrels of Iranian oil by Reliance Industries Ltd. Reliance did not respond to a Reuters email seeking comments.

"The demand side of the oil equation is always much more hard to discern than the more transparent supply side and as equities slide amidst rate increases, the oil market could begin to discount a worst case scenario with regard to oil demand expectations", Jim Ritterbusch, president of Ritterbusch and Associates, said in a note. Brent crude for December delivery traded down about 1.6% at $81.78. Late last week, the United States hinted that it was at least considering waivers. The International Energy Agency has warned surging prices could hit consumption in emerging economies which are already reeling from depreciating currencies. "Consumption is still increasing.Iran is there, so it's looking quite positive into year end before even talking about the speculative influence which tends to make things overshoot", the Financial Timesquoted Weir as telling the London conference.

So far, BP has shut down oil and gas production at four platforms, with Anadarko, Chevron, and BHP Billiton shutting in two each.

"Sanctions will be extremely tough".

"I think the sanctions will be very tough", Beard said.

Beard doesn't see "any chance" that the European Union's payment mechanism to keep trade with Iran could work. India had reduced purchases from Tehran a year ago due to a dispute over development rights of a giant gas field.

The group, led by Saudi Arabia, has pledged to increase output to compensate for the loss of any Iranian supply to US sanctions that come into force next month. However, the OPEC (and its non-OPEC associates such as Russia) and oil markets are working in the shadow of Trump's tweet and his forthcoming sanctions on Iran's oil industry.

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