Yesterday, the WTI crude oil prices dropped by more than 2%, slipping back from four-month highs as investors centered on the risk that emerging market issues and trade disputes could bend demand even as supply tightens.
But curiously, the news wasn't cited as a factor in prices pulling back on Friday; instead, USA president Donald Trump reportedly instructing aides to proceed with tariffs on about $200 billion more of Chinese products plus ongoing worries about the sanctions against Iran resulted in a mixed trading day, with West Texas Intermediate settling up 40 cents at $68.99 per barrel, and Brent dropping 5 cents per barrel to $78.12. The global benchmark fell 2.0 percent on Thursday after rising on Wednesday to its highest since May 22 at $80.13.
USA light crude futures were up 27 cents or 0.39 percent at 68.86 after tumbling 2.5 percent in the previous session.
In May, US President Donald Trump pulled out of an global nuclear deal with Iran, OPEC's third-biggest producer, and announced the imposition of sanctions.
"As we move into 2019, a possible risk to our forecast lies in some key emerging economies, partly due to currency depreciations versus the USA dollar", the agency said.
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The change comes at a time when the oil market is already facing a high degree of uncertainty, partly due to the Trump administration's decision to cut Iranian oil imports to zero.
In addition to this, the supply issues increased due to data revealing that US crude production plunged by 100k bpd (barrels per day) to 10.9 million bpd during the previous week.
USA companies in China are being hurt by tariffs in the growing trade war between Washington and Beijing, according to a survey, prompting US business lobbies to urge the Trump administration to reconsider its approach, Reuters reported. In truth, the market is tight but oil prices are stable in the range of $72 to $78 per barrel.
Washington re-imposed some of the financial sanctions from August 6, while those affecting Iran's petroleum sector will come into force from November 4.
Kazempour has represented Iran in that position for many years.
He said efforts by US President Donald Trump to remove Iran from the oil market through sanctions had allowed Russian Federation and Saudi Arabia to take OPEC as a hostage.