2019-04-29 12:00:00
OIL PRICE: ABOVE $71 ANEW
REUTERS - Oil prices fell on Monday, extending a slump from Friday that ended weeks of rallying, after President Donald Trump demanded that producer club OPEC raise output to soften the impact of U.S. sanctions against Iran.
Brent crude futures were at $71.66 per barrel at 0648 GMT, down 49 cents, or 0.7 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $62.87 per barrel, down 43 cents, or 0.7 percent, from their previous settlement.
Both benchmarks fell around 3 percent in the previous session.
ANZ bank said on Monday oil prices "took a hit after President Trump indicated he had spoken with Saudi Arabia about reducing the impact of lower Iranian oil exports by increasing flows elsewhere."
Trump said on Friday he called the Organization of the Petroleum Exporting Countries (OPEC) and told the cartel to lower oil prices.
"Gasoline prices are coming down. I called up OPEC, I said you've got to bring them down. You've got to bring them down," Trump told reporters.
The statement triggered a selloff, putting at least a temporary ceiling on a 40 percent price rally in oil prices since the start of the year.
The rally had gained momentum in April after Trump tightened sanctions against Iran by ending all exemptions that major buyers especially in Asia previously had.
Traders said the market was shifting its focus on the voluntary supply cuts led by the Middle East dominated producer club OPEC since the start of the year.
The cuts have been supported by some non-OPEC producers, most notably Russia, but analysts said this cooperation may not last beyond a meeting between OPEC and its other allies, a group known as OPEC+, scheduled for June.
Russia has said it would be able to meet China's oil demand needs as Beijing tries to replace the imports it usually gets from Iran.
"Russia appears to have every reason to resume ramping up production levels and the base case should start to become we will not see OPEC+ agree upon extending production cuts, with tweaks to cover the shortfall from Iran," said Edward Moya, senior analyst at futures brokerage OANDA.
Meanwhile, Russia hopes to restore oil pipeline supplies to central and western Europe in two weeks, after they were suspended last week over crude quality problems.
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Earlier:
2019, April, 26, 11:30:00
OIL PRICE: NOT ABOVE $74 YET
Oil prices dipped on Friday on expectations that producer club OPEC will soon raise output to make up for a decline in exports from Iran following a hardening of sanctions on Tehran by the United States.
2019, April, 26, 11:25:00
OIL PRICES 2019-20: $66 - $65
Crude oil prices are expected to average $66 a barrel in 2019 and $65 a barrel in 2020,
2019, April, 24, 11:35:00
OIL PRICE: NOT ABOVE $74
Crude oil prices for spot delivery rose to 2019 highs earlier in the week after the United States said on Monday it would end all exemptions for sanctions against Iran, demanding countries halt oil imports from Tehran from May or face punitive action from Washington.
2019, April, 24, 11:30:00
OIL MARKET IS FINE
The International Energy Agency is monitoring developments in global oil markets, and notes that markets are now adequately supplied, and that global spare production capacity remains at comfortable levels.
2019, April, 24, 11:25:00
OIL PRICE: OPEC + IRAN
OPEC is due to meet in June, where the Iran question will no doubt be raised. But oil and gas leaders are taking a cautious approach, with Kuwait's oil minister Khaled Al Fadhel noting that a decision would be taken only after a review of oil prices.
2019, April, 24, 11:20:00
OIL PRICE: OPEC + RUSSIA
the risk of oil prices heading well above $70/b to the oil market and the global economy, while also saying that if prices were too low it would hit investment in the industry and key oil producing countries.
2019, April, 22, 08:55:00
OIL PRICE: NEAR $74
Oil prices rallied by about 3 percent on Monday to their highest since late 2018 as the United States was set to announce that all imports of Iranian oil must end or be subject to sanctions.
