Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Crude Oil Prices - Weekly Outlook: October 8 - 12

Published 10/07/2018, 07:22 AM
© Reuters.  Oil Market Weekly Outlook
LCO
-
CL
-

Investing.com - Oil traders are likely to stay focused on potential disruptions to global crude supplies in the upcoming week, as looming U.S. sanctions on Iran are widely expected to lead to a tighter market.

The sanctions, which from November will include Tehran's oil exports, are being reinstated after U.S. President Donald Trump pulled out of the Iran nuclear deal earlier this year.

Iran is the third-biggest producer in the Organization of the Petroleum Exporting Countries (OPEC), supplying around 2.5 million barrels per day (bpd) of crude and condensate to markets this year, equivalent to around 2.5% of global consumption.

Many analysts say they expect Iranian exports to drop by around 1 million bpd once sanctions kick in.

Washington wants to cut Iran's oil exports to zero to put pressure on Tehran to renegotiate a nuclear deal.

November West Texas Intermediate crude, the U.S. benchmark contract, tacked on a penny on Friday to settle at $74.34 a barrel on the New York Mercantile Exchange. It reached a nearly four-year high of $76.90 on Wednesday

International benchmark Brent crude oil futures lost 42 cents, or 0.5%, to end at $84.16 a barrel on ICE Futures Europe. On Wednesday, the global benchmark hit a late 2014 high of $86.74.

Both crude benchmarks tallied a fourth weekly advance in a row. WTI rose 1.5%, while Brent crude advanced by 1.7%.

Oil prices at four-year highs have triggered concerns about demand as U.S. President Donald Trump has blamed OPEC for rising gasoline prices for American consumers.

Prices have eased slightly after Saudi Arabia and Russia said they would raise output to at least partly make up for expected disruptions from Iran.

Looking ahead, market players will also focus on monthly reports from OPEC and the International Energy Agency (IEA) this week to assess global oil supply and demand levels.

Fresh weekly data on U.S. commercial crude inventories - which come out one day later than usual due to Monday's Columbus Day holiday - will also capture the market's attention.

Ahead of the coming week, Investing.com has compiled a list of the main events likely to affect the oil market.

Monday, October 8

There will be no floor trading on the Nymex because of the Columbus Day holiday in the U.S. All electronic transactions will be booked with Tuesday's trades for settlement.

Wednesday, October 10

The American Petroleum Institute is to publish its weekly update on U.S. oil supplies.

Thursday, October 11

The Organization of Petroleum Exporting Counties will publish its monthly assessment of oil markets.

The U.S. Energy Information Administration will release its weekly report on oil stockpiles.

Friday, October 12

The International Energy Agency will release its monthly report on global oil supply and demand.

Later in the day, Baker Hughes will release weekly data on the U.S. oil rig count.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.