Oil falls after USA softens stance on Iranian sanction waivers

Oil prices rise as looming Norway strike adds to disruptions

Oil prices rise as looming Norway strike adds to disruptions

The US says it wants to reduce oil exports from Iran, the world's fifth-biggest producer, to zero by November, which would oblige other big producers to pump more.

Sources at South Korean refining companies and a Chinese trading firm indicated that light sweet and medium sour USA crude suppliers may have to step up efforts to remain competitive in the Asian market, especially due to China's continued threats to levy a 25% tariff on American energy products.

Oil prices dived late last night amid brewing trade war tensions and a move by Libya to ramp up its oil production.

Hedge funds and other money managers raised their net long position in the six most important petroleum futures and options contracts by 47 million barrels.

Tokyo/London - Oil prices rose more than $1 a barrel on Tuesday due to growing supply outages, with Norway shutting one oil field as hundreds of workers began a strike and Libya saying its production more than halved in recent months.

Futures edged up from a 2% decline in NY after the EIA reported Wednesday that US crude stockpiles shrank by 12.6 MMbbl last week.

Additionally, a report showed Saudi Arabia hiked its oil output in June to the highest level since the end of 2016, as it aims to cool the market after crude prices recently rose to 3-1/2-year highs. "We'll consider it", Pompeo told Sky News Arabia during a visit to Abu Dhabi, according to a State Department transcript released Tuesday.

Escalating economic growth concerns over trade and the return of Libya to the oil market on Wednesday sent oil prices lower before markets opened. Still, oil prices remained down for the session as investors anxious over the Trump administration's list of $200 billion in Chinese goods that could face 10% tariffs once public consultations end in August.

Secondly, the recent rally was being supported partly from a drop in Libyan output. If Libyan production can get back to its high then this will take care of some of the spare capacity concerns. Higher gas prices can leave USA households with less money to spend on other products.

The disruptions add to supply worries around the world. The country has emerged as one of the biggest buyers of American oil since the USA lifted a ban on crude exports in 2015. This will bring additional crude to the market. At the heart of the problem for buyers is a United States threat to cut off access to the American banking system for foreign financial institutions that settle trades with the Middle East nation's central bank.

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