Oil futures ended on Friday with the American benchmark building on its profit for the week, as the US reportedly put pressure on countries to meet the forthcoming sanctions against Iranian oil.
Traders also continued to look out for any impact on Hurricane Florence's energy market and looked for possible new US rates for Chinese goods, which could damage oil demand.
October futures on West Texas Average crude oil
CLV8, + 0.57%
the US benchmark rose by 40 cents or 0.6% and came in at $ 68.99 a barrel on the New York Mercantile Exchange. The contract will remain under the $ 70.37 mark earlier this week, the highest settlement since July 20, according to Dow Jones Market Data. The contract recorded 1.8% profit per week.
settled at a loss of 9 cents, or 0.1%, at $ 78.09 per barrel on ICE Futures Europe, under pressure from the ongoing trade dispute between the US and China and a Thursday report showing that the global raw stocks in reached a record in August. Global benchmark prices reached the highest point since May earlier this week and had a gain of around 1.6% per week.
Manisha Singh, assistant secretary of state for economic and business affairs, told lawmakers at a Thursday hearing that the country is willing to take the "most powerful action" against countries that do not comply with Iran's sanctions, including purchasing Iran's oil to zero, according to a news item.
Oil traders are worried about the Trump government's goal not to realize Iranian oil exports, said Phil Flynn, senior market analyst at Price Futures Group.
Separate reports Friday, meanwhile, President Donald Trump continued to impose more tariffs on China despite recent attempts to resume talks between the US and China, the second largest oil consumer in the world.
Trump insists on more Chinese rates because he thinks this would push China over the edge, Flynn said.
And as far as Florence is concerned, we know that there will soon be a destruction of demand, but a sharp increase in demand in a few weeks when [the region] is starting to rebuild, "he said.
The Gulf of Mexico must be viewed because Isaac, currently a tropical depression, could be a problem for energy operations in the Gulf next week, Flynn said. Isaac is expected to travel over the eastern and central Caribbean Sea in the coming days.
Hurricane Florence was relegated to Category 1 storm when it reached Carolina's Friday. Even with the downgrade it was expected that Florence would cause catastrophic flooding in parts of North Carolina and South Carolina, according to the National Hurricane Center.
The storm can cause disruptions in the fuel supply via important pipelines in the region.
"The Northeast is heavily dependent on the colonial pipeline and plantation pipeline for refined products, both running through the Carolinas," said a report from S & P Global Platts that was issued Friday morning.
Both pipelines normally worked on Thursday, he said. "There are currently no US offshore or onshore oil production facilities or refineries on the path of Florence," she added.
Fuel price tracker GasBuddy reported that more than half of the filling stations in Wilmington, N.C., had no more fuel.
Read: Hurricane Florence is causing some fuel shortages, but gas prices will not see a big peak
On Nymex, October gasoline
fell 1.1% to $ 1,970 per gallon, sedimentation slightly changed for the week, while October fuel oil
lost 0.6% at $ 2.209 per gallon, for a weekly decrease of 0.4%.
October natural gas
lost 1.8% to $ 2,776 per million British thermal units-0.3% lower for the week.
The demand for natural gas is "expected to fall over the storm, largely as a result of lower power consumption due to downtime and lower temperatures," according to the S & P Global Platts report.
On Thursday, the rough WTI and Brent prices suffered their largest one-day percentage losses in about a month, when the International Energy Agency said that daily crude oil exports in the Organization of Oil-exporting Countries climbed and global inventory climbed a record of 100 million barrels reached a day in August.
"Logistical restrictions on US production growth and continued concerns about the impact of US sanctions on Iranian exports mean that we have slightly revised our price forecasts," said Caroline Bain, chief commodities economist at Capital Economics. They linked the price of Brent to $ 70 a barrel by the end of 2018 by the end of 2018 and $ 60 by the end of 2019, an increase over previous forecasts of $ 65 and $ 55 respectively.
Weekly data from Baker Hughes
revealed that the number of drilling rigs that drilled oil in the United States, an important metric of activity in the sector, increased by 7 to 867 this week.
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