Crude oil futures continued to show weakness Thursday morning as reports of higher production by the world's biggest producers reduced the potential impact of U.S.-nuclear related sanctions against Iran, an analyst said.

WTI front-month crude oil prices were down 0.2 percent as of 9:42 a.m. EST to $65.20 per barrel, while Brent front-month futures were down 0.4 percent to $74.71 per barrel.

"Oil nevertheless trades lower, with WTI testing $65 while Brent has broken below the important $75 level to challenge the 200-day moving average at $74 per barrel," Ole Hanson, head of commodity strategy at Saxo Bank, told UPI.

Reports of production increases by the biggest producers of oil, including the United States, as well as Saudi Arabia and Russia, have helped to decrease concern about potential supply disruption once U.S.-nuclear related sanctions against Iran go into effect by Nov. 5.

Uncertainty related to how much of Iran's production of 3.8 million barrels per day, as of April 2018, would be unable to reach the markets had caused increases in crude oil prices.

As of the latest OPEC-issued data, production in Iran was likely down to 3.4 million barrels in September. It remains to be seen how much it may decrease after the sanctions go into effect.

The U.S. Energy Information Administration estimated on October 24 that Iran may be able to continue production of as much as 2.8 million barrels per day, even after sanctions go into effect, based on what happened in 2012 after the country faced a similar situation. Companies in some countries may also defy the sanctions and channel payments in a way that it avoids the U.S. financial system.

Hansen said talk of U.S. waivers from the sanctions potentially being granted to India and South Korea may also reduce the ability of the sanction to impact Iran's ability to produce and export crude oil.

"These developments have further reduced the potential impact of US sanctions against Iran when they come into force next week," Hansen added. "WTI crude is now looking for support ahead of $64 per barrel, with a break below carrying the risk of an even deeper correction than the one already witnessed."

On Oct. 3, Brent crude futures traded as high as $86.29 per barrel amid widespread concern about the impact of U.S. sanctions against Iran, as well as possible supply disruptions in Venezuela, where the government is undergoing economic and political turmoil.

Related Links
All About Oil and Gas News at OilGasDaily.com

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Crude futures fall as traders get in position for inventory build-up
Washington (UPI) Oct 30, 2018
Crude oil futures were lower as of mid-morning Tuesday as market participants appeared to be positioning themselves for an inventory build-up once data is released later Tuesday by API, and then Wednesday by the EIA. "The trade is looking for a crude oil inventory build. I would categorize this as a seasonal build as the extended driving season is finally over heading into the North American Time zone change this weekend," John Thorpe, a commodity broker at Los Angeles-based Cannon Trading, tol ... read more