Saudi Arabia's governor to the Organization of the Petroleum Exporting Countries (OPEC) says the kingdom's oil export will be little changed this month, dealing a setback to US President Donald Trump who had pinned hopes on Saudis to reduce oil prices in global markets.
Meanwhile, West Texas Intermediate crude prices for August delivery soared 0.13 per cent to trade at Dollars 68.33 a barrel while Brent crude was up 0.28 per cent at USD 72.78 on the New York Mercantile Exchange.
Brent crude settled up 49 cents at $73.07 a barrel.
The rapid slide is surprising as it comes amid disruptions in Canada and Libya, growing unrest in Iraq's oil-producing heartland of southern Basra and the threat to Iranian exports from looming USA sanctions.
Both benchmarks rose by 1 percent on Wednesday after inventory data from the U.S.
Two weeks ago, the investment bank also said that concerns over a U.S.
WTI crude oil prices built on overnight recovery move from near one-month lows and edged higher through the early European session on Friday.
Gasoline inventories fell by 3.2 million barrels (MMBbl), while distillate stockpiles, which include diesel and heating oil, fell by 371,000 Bbls, EIA data showed.
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Although global demand for oil is growing, OPEC has tried to control the call for more oil to inflate prices - which is good for the OPEC economies but bad for everyone else.
United States petrol inventories dropped by 3.2-million barrels last week, while distillate stockpiles, which include diesel and heating oil, declined by 371,000 barrels, the Energy Information Administration said.
"This is a market where the increase in GCC and Russian supplies has come at a time when the refinery bid is lacking", said Amrita Sen, Energy Aspects' chief oil analyst.
Since President Trump announced the USA withdrawal from the JCPOA, Washington has been pressing allies to end all imports of Iranian oil by a November 4. deadline Moreover, in a briefing on June 26, a senior State Department official was quite firm that the US doesn't anticipate offering any extensions or waivers to that timeline. The objective is to bring down oil prices-and gasoline prices-ahead of the mid-term elections in November, the same month in which the renewed US sanctions on Iran are returning. USA crude stocks rose by 5.8 million barrels last week, compared with a forecast for a decline of 3.6 million barrels.
OPEC's commitment in June was to bring compliance to the OPEC production cut deal closer to 100%-which would equate to about a 1 million bpd increase in production.
The incumbent USA administration has lobbied Saudi Arabia to increase output in order to offset the impact of its sanctions on the oil industries of Iran and Venezuela - two of the world's main crude oil producers.
Saudi Arabia boosted production sharply in June, raising crude shipments to world markets by 390,000 barrels a day to 7.6-million barrels a day, Kpler tanker-tracking data showed.