Published: Mon, May 13, 2019
Markets | By Otis Pena

United States to ensure oil supplies to India | #138285

United States to ensure oil supplies to India | #138285

U.S. President Donald Trump has said he had called Saudi Arabia and OPEC and told them to lower oil prices, but he did not say whom he spoke to or when the conversations took place.

On May 9, United States crude oil June futures fell 0.7% and settled at $61.7 per barrel.

US West Texas Intermediate (WTI) crude futures were up 13 cents at US$61.83, having earlier hit US$62.49.

Crude in NY advanced 0.3%, while changes in the pricing structure of Brent futures contracts in London gave a strong signal that supply was getting scarce.

U.S. increases levies on $200 billion worth of Chinese goods to 25%.

Talks were to continue on Friday.

He said he would start "paperwork" for 25% duties on a further US$325 billion of Chinese imports, saying he was in no rush for a deal.

The news comes despite statements from Beijing that it will not comply with the USA sanctions against Iran and will continue trading with the country including buying crude oil from it.

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The U.S. Energy Information Administration expects global oil demand to rise by 1.4 million barrels per day (bpd) this year.

While trade war concerns have weighed on prices this week, "the spreads clearly point towards a tight market", ING bank said.

July Brent crude jumped to a $1/bbl premium to the August contract on Friday―a situation known as backwardation―suggesting supply fears remain a dominant force.

China Petrochemical Corp (Sinopec Group) and China National Petroleum Corp (CNPC), the country's top state-owned refiners, are skipping Iranian oil purchases for loading in May after Washington ended sanction waivers to turn up pressure on Tehran, three people with knowledge of the matter said.

"Prices are finding fundamental support from the tightening supply, as also indicated by the pronounced state of backwardation in the Brent forward curve", Commerzbank AG analysts including Carsten Fritsch wrote in a report.

The Gulf oil source also said that based on market conditions so far, current oil production level by OPEC and its allies should be sufficient to bring global oil inventories back to balance by the end of the year.

Gasoline futures climbed 0.7% to $1.9892/gal. IFM Global Infrastructure Fund agreed to buy Buckeye Partners LP, an owner of USA oil pipelines and terminals, for $6.5 billion.

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