Saudi oil output expected to rise next month: Falih

Saudi oil output expected to rise next month: Falih

Saudi oil output expected to rise next month: Falih

New U.S. sanctions on Iranian oil exports start on November 4, while Iran has accused Saudi Arabia and Russian Federation of breaking an OPEC-led agreement on output cuts by producing more crude.

Mr Pradhan said that oil production in Venezuela is sliding, which had significant share in world's global crude basket.

Jim Ritterbusch, president of Ritterbusch and Associates, said Saudi Arabia could cut as much as 500,000 bpd of crude production "as a warning shot" to discourage USA sanctions. Boosted by the hawkish tone seen in the FOMC meeting minutes, the US Dollar Index rose to its highest level in a week at 95.62 in the last hour.

"There is no problem on this issue", Kardor said, Iran's ISNA news agency reported.

Iranian Oil Minister Bijan Namdar Zanganeh said that the market is facing reduction in supply and no producer is able to make up for the loss.

"Our view is that the market is now adequately supplied and well balanced".

U.S. President Donald Trump said the Saudi crown prince intends to expand an investigation into the disappearance of Khashoggi and that the prince did not know what happened in the Turkish consulate where Khashoggi apparently disappeared.

Crude bumped higher this year as uncertainties persisted over whether the Organization of Petroleum Exporting Countries and its partners can offset potential supply losses from US sanctions on Iran that kick in early next month. "That is what is impacting the price", he said. OPEC, he said, had in June made a decision to raise production by 1 million barrels per day.

Another drop in Iranian exports should have been bullish for crude oil, but gains may have been limited by concerns over demand.

Out of this, supplies in the first seven months, till October, have not been impacted.

Any supply deficit in the fourth quarter was unlikely to be large enough to do more than support prices, they said. USA crude was down 5 cents at $71.29. "Saudi Aramco's desire is also to invest in consumer-facing segments such as retail fuels and petrochemicals, building an integrated downstream business spanning India as well as our commitment to invest in crude oil storage here in India in order to be more responsive and closer to the demand needs". But longer-term for the rest of the year, gas prices will likely be steady in November and December and much higher than the same period last year.

"Once pipelines and oil terminals are built connecting the Permian to the U.S. Gulf Coast, then there will be a big step up in U.S. crude oil exports", Harry Tchilinguirian, oil strategist at French bank BNP Paribas told Reuters Global Oil Forum.

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