How US-China trade war may bring cheaper oil to Indian shores

Saudi Arabia Reduced Oil Production in July

Oil prices had been edging higher prior to the announcement.

US West Texas Intermediate (WTI) crude futures were up 1 cent at $69.02 barrel. Analysts polled by Reuters had forecast a 1.7 million-barrel draw in gasoline stocks USOILG=ECI.

Moreover, amid both economic growth as well as Beijing's mandate that gas make up at least 10 percent of the country's energy mix by 2020 to offset the effects of rampant air pollution from dirtier thermal coal power production, the long term trajectory for both China's natural gas consumption, as well as oil usage, will continue to increase, posing both a geopolitical and financial dilemma for the country that the USA and many western powers grappled with for decades.

"Of course, such decisions being taken by the US side are absolutely unfriendly and can hardly be associated with the. constructive atmosphere achieved at the latest meeting of the two presidents", he was quoted by Russian news agency Tass as saying.

Rosneft's oil-output plans for late 2018 "will depend on what happens on the OPEC front", said Eric Liron, the company's top executive in charge of production, "Be it OPEC, OPEC plus, OPEC plus plus, OPEC minus, minus minus".

Brent crude oil futures were at $74.61 per barrel, lower 4 cents from their previous close.

West Texas Intermediate, the United States benchmark, shed 2% to $67.70 per barrel after the Ministry of Commerce released a new list of American goods that will be subject to tariffs.

Goldman Sachs insists we are heading for a "very, very tight oil market".

Leaked document shows Google's plans for its censored search engine in China
Other analysts cited China's "long memory" of past criticism from Google executives, the Wall Street Journal says (paywall). Despite pulling its search engine in 2010, Google now has more than 700 employees in China, according to the Times .

The White House said in a statement Monday that the United States will reactivate a slew of sanctions on Iran's financial and industrial sectors beginning on Tuesday.

Under the arrangement, Iran's oil payments were deposited into accounts in oil-importing countries and used by Tehran to buy goods.

The agency slightly increased its expectation for 2019 production growth to 1.02 million bpd from 1.01 previously. The impact on the Iranian economy is expected to be harsh and the restrictions on oil and gas exports are expected to be harsher still.

The concerns over possible supply disruptions in Iran come at a time when analysts warn that a global heatwave could increase oil demand.

Ehsan Khoman, head of Mena Research and Strategy at MUFG Bank, said the world's largest oil producers - Saudi Arabia, the U.S. and Russian Federation - continue to attempt to manage oil prices in-check primarily for geopolitical reasons, aiming to increase supply near-term to help lower (or at least prevent further rises in) oil prices, and their bilateral relationships among them are driving near-term oil markets. That compares to its previous year's spot purchases of 6.6 million barrels from the shale producer.

Refinery crude runs rose by 118,000 barrels per day, EIA data showed.

Flows from Iran to China and India - its two key customers - remained high, but exports to South Korea, Europe fell steadily as these buyers start to elsewhere.

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