Oil prices pulled back early Friday amid concerns additional US tariffs would be placed on China, leading to a potential drop in demand. gold gave back most of its gains on Friday due to upbeat USA retail sales and consumer confidence reports.
Responding to a question from Congressman Eliot Engel, the Indian-American official said the Trump Administration has been talking to all its allies and partners and trying to convince them to fully implement the new Iranian sanctions which the U.S. has imposed following its withdrawal from the Iranian nuclear deal.More news: Firmino eases Liverpool supporters’ worries with latest update
The IEA said in a monthly report that oil prices could break out above $80 a barrel unless other producers act to offset deepening supply losses in Iran and Venezuela.
Brent crude LCOc1 rose 59 cents to $78,77 a barrel by 11:53 a.m. EDT.
Washington has said it wants to cut Iran's oil exports to zero following the reimposition of a second set of sanctions on 4 November.
The US pulled out of the 2015 landmark nuclear deal with Iran in May and will reimpose sanctions on the country's oil sector in November.More news: S.B. 100: California clean energy bill is now law
A slowdown in USA production growth next year comes at a delicate time for oil markets, especially with Iran production being curtailed while uncertainties remain in Venezuela, Libya and Nigeria, all three are OPEC producers.
Under the USA pressure to lower oil prices, the OPEC and its allies agreed in June to boost production, having participated in a supply-cutting deal in place since 2017.
Add in a seasonal increase in oil use and the potential for further production shortfalls elsewhere in the world, and supply could start seriously trailing demand within weeks. The spike in output also brought total global supply to a record 100 million barrels a day last month.
Back in August, Kazempour Ardebili said the United States president has apparently been duped by Saudi Arabia into believing that the kingdom can replace Iranian barrels cut from the market. Geopolitics and production problems are capping output in some OPEC countries, and spare capacity in Saudi Arabia, in the world's top exporter, remains thin. "But we have been more bullish than most in terms of how much we are going to lose from Iran and we believe we are going to lose 1.5-1.8 million barrels per day", Sen added.More news: Millions prepare for potentially catastrophic Hurricane Florence