Left Menu
Development News Edition

UPDATE 5-Oil set for weekly loss as demand fears outweigh geopolitics

Reuters | Tokyo | Updated: 14-06-2019 19:21 IST | Created: 14-06-2019 19:20 IST
UPDATE 5-Oil set for weekly loss as demand fears outweigh geopolitics
Image Credit: Pexels

Oil prices steadied on Friday but remained on track for a weekly loss on fears that trade disputes will dent global oil demand, though attacks on two oil tankers in the Gulf of Oman this week gave prices a floor. Brent crude futures were up 14 cents at $61.45 a barrel by 1344 GMT, having gained 2.2% on Thursday. U.S. West Texas Intermediate crude futures were down 9 cents at $52.19. WTI also rose 2.2% in the previous session. Both contracts were on course to register weekly declines of about 3%.

The International Energy Agency cut its demand growth forecast for 2019 by 100,000 barrels per day (bpd) to 1.2 million bpd, citing worsening prospects for world trade. However, the Paris-based agency said it expects demand growth to climb to 1.4 million bpd for 2020. On Thursday the Organization of the Petroleum Exporting Countries cut its 2019 forecast for growth in global oil demand even lower than the IEA, to 1.14 million bpd. The attacks on oil tankers near Iran and the Strait of Hormuz pushed up oil prices by as much as 4.5% on Thursday.

It was the second time in a month tankers have been attacked in the world's most important zone for oil supplies as tensions increase between the United States and Iran. Washington blamed Iran for Thursday's attacks, prompting a denial and criticism from Tehran. "Yesterday's attacks on the Japanese and Norwegian tankers in the Gulf of Oman underscore the severity of the security risks stemming from the Iran crisis and the difficulty of achieving a diplomatic off-ramp as long as the crippling U.S. sanctions remain in place," RBC bank said.

Tensions in the Middle East have escalated since U.S. President Donald Trump withdrew from a 2015 multinational nuclear pact with Iran and reimposed sanctions, especially targeting Tehran's oil exports. Iran, which has distanced itself from the previous attacks, has said it will not be cowed by what it describes as psychological warfare.

U.S. Secretary of State Mike Pompeo said the United States has assessed that Iran was behind the attacks on Thursday. The U.S. military later released a video that it said showed Iran's Revolutionary Guard removing an unexploded mine from the side of a Japanese-owned oil tanker. In a statement on Thursday evening, the Iranian mission to the United Nations said Tehran "categorically rejects the U.S. unfounded claim with regard to 13 June oil tanker incidents and condemns it in the strongest possible terms".


TRENDING

OPINION / BLOG / INTERVIEW

COVID-19 seems cooking biggest ever global scam

The increasing number of corruption cases on COVID-19 funds from throughout the world and involvement of high profile persons indicate that the countries cant ignore corruption in their pandemic response programs. This has generated the nee...

Health Management Information Systems lack holistic, integrated, and pandemic resilient character

Being a part of the United Nations system, the World Health Organization WHO deserves its share of rebuke for its alleged failure issue COVID-19 health emergency alerts on appropriate time. However, the pandemic has also exposed loopholes i...

Pride in the time of coronavirus: a welcome move online?

This year is different in many ways not least as celebrations are also taking place against the dramatic backdrop of a global health crisis and a resurgence in grassroots activism following the death of George Floyd in Minneapolis. ...

COVID-19: Weighing up the benefits and limitations of edtech platforms

Edtech companies shouldnt focus on merely pushing contents, but to provide an interactive, effective teaching and learning environment. ...

Videos

Latest News

Australia's Victoria state reports 74 new cases

The hard-hit Australian state of Victoria has recorded 74 new coronavirus cases after announcing a record 108 new infections on Saturday. The Saturday increase resulted in state Premier Daniel Andrews announcing a lockdown of nine inner-cit...

Barkley inspires Chelsea to 3-0 win over Watford

Ross Barkley set up the opening goal before scoring himself late in the game as Chelsea eased past relegation-threatened Watford in a 3-0 win to consolidate fourth place in the Premier League. The England midfielder played in Olivier Giroud...

PM greets Paswan on birthday

Prime Minister Narendra Modi greeted Union minister and Lok Janshakti Party leader Ram Vilas Paswan on his birthday on Sunday, saying his administrative experience and insight on key policy issues are a major asset for the government. Best ...

Mexico surpasses France in coronavirus death toll

Mexico reported 523 more coronavirus deaths on Saturday, pushing its tally to 30,366, overtaking France to become the fifth-highest in the world.The health ministry also reported 6,914 new infections and a total of 252,165 confirmed cases. ...

Give Feedback